Realty firm Supertech Ltd aims to raise approximately Rs 1,600 crore from institutional investors by July to ensure the completion of its 18 ongoing housing projects across Delhi-NCR. Chairman RK Arora stated that these projects possess positive net worth, enabling the company to finish them through fresh funding and receivables from customers. Supertech has already signed a term sheet with investors for this interim funding, and due diligence is presently underway, although the names of the investors were not disclosed.
Following approval from the Supreme Court to arrange interim funding for project completion and the handover of flats to existing customers, Supertech plans to raise the targeted amount by the end of July. Arora explained that out of the 18 ongoing projects, 17,000 flats need to be delivered to customers within the next two years. To accomplish this, the company requires Rs 3,000 crore for pending work.
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Supertech holds approximately Rs 2,500 crore in receivables from customers for the sold units, alongside unsold units worth Rs 10,000 crore in these projects. Arora acknowledged outstanding bank loans and dues to development authorities amounting to approximately Rs 3,000 crore. The proposed interim funding will primarily be utilized for construction purposes, while collections from sold and future units will be allocated towards clearing outstanding amounts owed to banks, non-banking financial companies (NBFCs), new investors, and authorities.
With the support of fresh funding and customer receivables, Supertech remains confident in completing these projects, as they possess positive net worth. Previously, in March of last year, the National Company Law Tribunal (NCLT) had initiated insolvency proceedings against Supertech Ltd based on a petition filed by the Union Bank of India. However, this decision was challenged by Supertech’s promoter, RK Arora, before the National Company Law Appellate Tribunal (NCLAT), which later ordered the commencement of insolvency proceedings solely for the Eco Village II project, allowing other projects to continue under the overall supervision of the Interim Resolution Professional (IRP).
