Omaxe Limited , a prominent real estate developer, has made significant strides in its fundraising efforts through a non-convertible debenture (NCD) issue. The company recently announced the allocation of ₹39.8 crore as part of its larger ₹199.4 crore NCD issue, marking an important step in its financial strategy.

Key Highlights of the NCD Allocation

• First Tranche Allocation: Omaxe has allotted 398 Unrated Senior Secured Non-Convertible Debentures (NCDs) in the first tranche.
• Face Value: Each NCD has a face value of ₹10.00 lakh.
• Total First Tranche Value: The allocation amounts to ₹39.80 crore, representing approximately 20% of the total NCD issue.
• Overall Issue Size: The complete NCD issue is set at ₹199.40 crore, comprising 1,994 NCDs.

Terms of the NCDs

• Issuance Type: Private Placement
• Listing Status: The NCDs are not proposed to be listed on any stock exchange.
• Tenure: Up to 54 months from the date of allotment
• Maturity Date: July 16, 2025
• Return on Investment: Committed return of 12% IRR for redemption from project cash flows

Security Structure

The NCDs are backed by a robust security structure, which includes:

1. Exclusive first charge by way of mortgage over the project land, leasehold rights, and development share of specific projects.
2. Exclusive first charge by way of hypothecation over all bank accounts, receivables, and assets of the projects.
3. Unconditional and irrevocable guarantees from key individuals and associated companies.
4. Additional charges on other Omaxe projects, including Project Resort-A&B in Chandigarh.

Redemption Terms

• The NCDs will be redeemed in full at the end of the tenure.
• Redemption amount will equal the issue price plus the committed return and any additional return.
• In case of delay in payment, an additional 3% IRR over the committed return will be applicable.

This NCD issue represents a strategic move by Omaxe to raise funds, potentially for ongoing and future real estate projects. The structured approach to the NCD allocation, with a focus on secured investments and attractive returns, may appeal to institutional investors looking for opportunities in the real estate sector.

Omaxe's decision to raise funds through NCDs could be seen as a reflection of the company's confidence in its project pipeline and cash flow projections. As the real estate market continues to evolve, such financial instruments provide developers with alternative funding sources to support their growth and project execution strategies.

Investors and market observers will likely keep a close eye on how Omaxe utilizes these funds and the performance of the projects tied to this NCD issue.

Omaxe Ltd has announced ambitious expansion plans in Madhya Pradesh, with a focus on developing a sprawling 450-acre integrated township in Indore. The real estate developer has earmarked a substantial investment of ₹1,200.00 crore for this large-scale project, signaling its commitment to growth in the region.

Expansion Strategy

Omaxe's decision to invest in Indore, the commercial capital of Madhya Pradesh, demonstrates the company's strategic approach to tapping into emerging real estate markets. The planned 450-acre integrated township is set to be a significant addition to Indore's urban landscape, offering a mix of residential plots, commercial spaces, and public infrastructure along the city's Super Corridor.

Financial Outlook

The company projects that this new development will generate revenues of ₹2,500.00 crore over the next three years. This ambitious forecast indicates strong confidence in the project's potential and the overall demand in Indore's real estate market.

Impact on Indore's Real Estate Market

This massive investment by Omaxe is likely to have a substantial impact on Indore's real estate sector. The development of a 450-acre integrated township could potentially create new job opportunities, attract further investments, and contribute to the overall economic growth of the region.

Looking Ahead

As Omaxe moves forward with its expansion plans, investors and market watchers will be keenly observing the progress of this ambitious project in Indore. The success of this venture could play a crucial role in the company's projected revenue growth and its position in the competitive real estate market.

The announcement of this large-scale project underscores Omaxe's commitment to expanding its footprint in key markets and its confidence in the growth potential of Indore's real estate sector.