Ricardo Constructions Secures Rs.505 Crore for Projects and Debts
Real Estate

Ricardo Constructions Secures Rs.505 Crore for Projects and Debts

Ricardo Constructions, a key player in the construction domain and a wholly-owned subsidiary of the renowned Shapoorji Pallonji Group, has successfully secured a substantial investment of ?505 crore from the Asia Pragati Strategic Investment Fund. This strategic move aims to bolster ongoing projects and alleviate debt burdens incurred from previous financial engagements, as per insiders familiar with the development.

The investment, orchestrated by the Asia Pragati Fund and managed by global alternative investment firm PAG, marks a significant milestone for Ricardo Constructions. While PAG declined to comment on the transaction, Shapoorji Pallonji and Co remained unresponsive to ET's request for clarification.

The funds raised by Ricardo Constructions have been allocated towards the completion of existing projects and the repayment of debts amounting to ?405 crore, sourced from entities such as the Piramal group company and HDFC Bank, as per disclosures made by the company to the NSDL.

A noteworthy portion of the capital injection will be directed towards the culmination of a residential project situated in Mulund, a prominent suburb of Mumbai. Originally initiated by Nirmal Lifestyle in collaboration with the United States Tennis Association (USTA) in 2009, the Mulund luxury residential project underwent a change of ownership to Ricardo Constructions. With the project's deadline extended to March 2026 by the MahaRERA in February 2023, Ricardo Constructions aims to expedite the construction process with the newly acquired funds.

In addition to the financial boost from the Asia Pragati Fund, Ricardo Constructions benefits from the unconditional guarantees provided by affiliated entities. SD Corporation, another prominent member of the Shapoorji group, extends an unconditional guarantee amounting to ?600 crore, while Honcho Properties commits up to ?330 crore, underscoring a collective effort towards project success and financial stability.

The infusion of capital from the Asia Pragati Strategic Investment Fund not only propels Ricardo Constructions towards project completion but also reaffirms the group's commitment to delivering excellence in the construction sector while navigating complex financial landscapes.

Ricardo Constructions, a key player in the construction domain and a wholly-owned subsidiary of the renowned Shapoorji Pallonji Group, has successfully secured a substantial investment of ?505 crore from the Asia Pragati Strategic Investment Fund. This strategic move aims to bolster ongoing projects and alleviate debt burdens incurred from previous financial engagements, as per insiders familiar with the development. The investment, orchestrated by the Asia Pragati Fund and managed by global alternative investment firm PAG, marks a significant milestone for Ricardo Constructions. While PAG declined to comment on the transaction, Shapoorji Pallonji and Co remained unresponsive to ET's request for clarification. The funds raised by Ricardo Constructions have been allocated towards the completion of existing projects and the repayment of debts amounting to ?405 crore, sourced from entities such as the Piramal group company and HDFC Bank, as per disclosures made by the company to the NSDL. A noteworthy portion of the capital injection will be directed towards the culmination of a residential project situated in Mulund, a prominent suburb of Mumbai. Originally initiated by Nirmal Lifestyle in collaboration with the United States Tennis Association (USTA) in 2009, the Mulund luxury residential project underwent a change of ownership to Ricardo Constructions. With the project's deadline extended to March 2026 by the MahaRERA in February 2023, Ricardo Constructions aims to expedite the construction process with the newly acquired funds. In addition to the financial boost from the Asia Pragati Fund, Ricardo Constructions benefits from the unconditional guarantees provided by affiliated entities. SD Corporation, another prominent member of the Shapoorji group, extends an unconditional guarantee amounting to ?600 crore, while Honcho Properties commits up to ?330 crore, underscoring a collective effort towards project success and financial stability. The infusion of capital from the Asia Pragati Strategic Investment Fund not only propels Ricardo Constructions towards project completion but also reaffirms the group's commitment to delivering excellence in the construction sector while navigating complex financial landscapes.

Next Story
Infrastructure Urban

Macrotech acquires Bain Capital's stake in 3 entities for Rs 3 Bn

Realty firm Macrotech Developers has acquired Bain Capital's stake in three industrial and logistics park entities for Rs 3.07 billion as part of a strategy to enhance rental income. Macrotech Developers is one of the leading real estate firms in the country. It sells properties under Lodha brand. In a regulatory filing, the company informed that it has "executed Securities Purchase Agreements (SPAs) with India Opportunities Fund SSA Scheme 1 and DSS Opportunities Investment 1 (Bain Capital) for acquisition of their interest in the digital infrastructure platform entities (Bellissimo Digital I..

Next Story
Infrastructure Urban

Tata Steel reports Rs 7.59 Bn net profit in Jul-Sep

Tata Steel reported a net profit of Rs 7.58 billion for the September 2024 quarter, helped by lower expenses. It had posted a net loss of Rs 65.11 billion in the July-September period of the preceding 2023-24 fiscal, the company said in an exchange filing. In a separate statement, Tata Steel CEO and MD TV Narendran said the global operating environment remained complex, with key regions facing subdued growth. Macroeconomic conditions in China continued to weigh on commodity prices, including steel. In India, steel demand continued to improve, but domestic prices were under pressure due to chea..

Next Story
Infrastructure Urban

SC to verdict on Nov 7 on plea against NCLAT

The Supreme Court is scheduled to pronounce its verdict on a plea of State Bank of India (SBI) and other creditors challenging the National Company Law Appellate Tribunal (NCLAT) decision that upheld the resolution plan of grounded air carrier Jet Airways and approved the transfer of its ownership to Jalan Kalrock Consortium (JKC). A bench of Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra will pronounce the verdict which was reserved on October 16. The NCLAT had on March 12 upheld the resolution plan of the grounded air carrier and approved the transfer of its ownersh..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000