Kotak Investment Advisors Ltd. (KIAL) has committed INR 450 crore to revive Supertech's stalled project in Sector 94, Noida, alongside an additional INR 310 crore to repay existing lenders. The 5 million-square-foot development, already 50% complete, includes NCR's tallest residential tower. The project, expected to generate over INR 7,000 crore in revenue, will proceed with Supertech, KIAL, and the Noida Authority managing the escrow account. Supertech's liabilities total INR 8,000 crore, but with project receivables exceeding INR 14,000 crore, the company remains financially viable as it works to deliver over 15,000 homes.
Kotak Investment Advisors Ltd. (KIAL) has committed to invest INR 450 crore into Supertech's stalled project in Sector 94, Noida, with the intent of reviving the delayed construction. In addition to this considerable investment, KIAL will allocate INR 310 crore to repay existing lenders, facilitating the resumption of work on this long-overdue project. Spanning 5 million square feet, the development is already halfway to completion and includes the tallest residential tower in the National Capital Region (NCR).
This ambitious project, once completed, is poised to generate over INR 7,000 crore in revenue. The Noida Authority, which was owed INR 3,319 crore from this project, required that KIAL deposit INR 50 crore with the authority. Supertech, KIAL, and the Noida Authority will form an agreement to establish an escrow account that will oversee the project's financial management.
The Noida Authority's board approved Kotak's proposal, facilitating the clearance of land dues through the escrow account. Kotak's commitment includes an INR 310 crore payment to existing lenders, providing them with an exit. Originally, the Noida Authority had allotted the 70,000-square-metre plot to the Supertech Group in March 2011. By May 2024, the developer's dues had accumulated to INR 3,319 crore. KIAL has requested the authority to begin issuing No Objection Certificates (NOCs) for map approvals and property registries, which will allow buyers to start paying their remaining balances.
KIAL plans to conduct a comprehensive third-party audit of the project, including a financial audit that will assess receivables from both sold and unsold units. Sales and registration proceeds will flow directly into the escrow account. Once KIAL deposits the INR 50 crore payment, the authority will initiate the registry process and approve the revised project map.
The Supernova project comprises four towers: Spira, the Iconic Tower, which stands as India's tallest mixed-use development at 80 floors and 300 metres high; Nova East; Nova West; and Astralis Tower. While the builder has delivered most residential units, they still need to complete the shopping mall and serviced apartments. Reviving this initiative will not only ensure the completion of Supernova but also enable Supertech to resume other long-stalled developments. The Noida-based real estate developer remains dedicated to delivering over 15,000 homes.
Supertech's total liabilities, which include dues to banks and development authorities, amount to approximately INR 8,000 crore. However, project receivables from both launched and yet-to-be-launched projects exceed INR 14,000 crore, making the projects' net worth positive. It has proposed a revival plan to the Uttar Pradesh government and is strategically selling land parcels to facilitate exits for lenders and speed up construction on delayed projects.
Kotak Investment Advisors Ltd. (KIAL) has committed a significant investment of INR 450 crore to revive Supertech's stalled Supernova project in Noida, along with an additional INR 310 crore to repay existing lenders. This collaboration with the Noida Authority, which was owed INR 3,319 crore, aims to facilitate the project's completion and generate over INR 7,000 crore in revenue. Supertech's overall financial position, with project receivables exceeding liabilities, further supports the feasibility of this revival plan. This intervention by KIAL, the Noida Authority, and Supertech's strategic land sales presents a promising opportunity to complete this landmark project in the National Capital Region.
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