Embassy Developments approves ₹160 crore fundraise through non-convertible debentures

Realty firm Embassy Developments Ltd on Saturday (September 19) said it has approved raising up to ₹160 crore through the issue of up to 16,000 non-convertible debentures (NCDs) on a private placement basis.

The company’s board-constituted committee approved the fundraise at its meeting on Saturday. The proposed NCDs will have a face value of ₹1 lakh each and may be issued in one or more tranches, part of tranches or series, from time to time.

The approval is an enabling authorisation to facilitate the issuance of the debentures as and when required. The company said disclosures on the amount, purpose and other material terms will be made at the time of issuance, as applicable.

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The proposed securities will be rated, unlisted, secured, redeemable and taxable non-convertible debentures. They are not proposed to be listed on any stock exchange.

The tenure, date of allotment and maturity will be decided by the board-constituted committee and mutually agreed upon between the relevant parties from time to time. The coupon or interest rate, payment schedule and principal repayment terms will also be decided at the time of issuance.

The debentures will be secured by a charge on identified assets of the company and/or its subsidiaries, as may be mutually agreed between the relevant parties.

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Back in August this year, Embassy Developments said it remains confident of achieving its 2026-27 (FY27) pre-sales target of ₹8,000 crore, supported by a strong launch pipeline of around ₹19,500 crore across the remaining three quarters of the year, Rajesh Kaimal, Chief Financial Officer of Embassy Developments, said.

Demand is expected to be strong across markets, with Bengaluru continuing to lead while Mumbai gains traction.

Kaimal said collections should strengthen from Q2 as projects launched in the previous financial year, 2025-26 (FY26), enter the collection cycle. With net debt at around ₹3,300 crore and a debt-to-equity ratio of 0.35x, he said the balance sheet remains comfortable.

The promoters have also assured the company that the share pledge will be reduced over the next two to three years.

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For the April-June quarter of 2026 (Q1FY27), Embassy Developments reported bookings of ₹868 crore, more than four times the ₹198 crore recorded a year earlier. The area sold also more than doubled to 4.84 lakh square feet from 2.06 lakh square feet, while collections rose 54% year-on-year to ₹496 crore from ₹322 crore.

On Friday (September 19), shares of Embassy Developments Ltd ended at ₹53.87, down by ₹0.99, or 1.80%, on the BSE.