Gaurs Group Raises ₹440 Crore via Fully Subscribed NCD Issue

• ₹440 crore NCD issue fully subscribed by top mutual funds

• Debentures to be listed on the National Stock Exchange

• Funds to support expansion, construction, and debt optimisation

Gaurs Group has successfully raised ₹440 crore through its maiden public issuance of non-convertible debentures (NCDs), marking a major financial milestone for the privately held real estate developer. The issue was fully subscribed by three leading mutual funds in India, underlining growing institutional confidence in the group’s financial strength and long-term strategy.

The NCDs were issued by Gaursons India Private Limited, the holding company of Gaurs Group, and will be listed on the National Stock Exchange (NSE). Kotak Mahindra Bank acted as the sole arranger for the transaction.

According to the company, the fundraising process was completed over nearly three months and witnessed strong interest from capital market participants despite challenging conditions for real estate financing. The successful subscription places Gaurs Group among a limited set of non-listed real estate companies in India that have managed to raise capital through listed debentures with participation from multiple mutual funds.

Commenting on the development, Sarthak Gaur, Director, Gaurs Group, said the issue reflects the group’s financial resilience and rising credibility among institutional investors. He noted that the successful fundraise will allow the company to pursue growth opportunities while maintaining a disciplined and balanced capital structure.

The proceeds from the NCD issue will be deployed across key business requirements, including land acquisition, construction and project execution, repayment of higher-cost borrowings, and general corporate purposes. Since the funds have been raised at the holding company level, they will also provide added liquidity and financial flexibility to the group’s operating subsidiaries.

A spokesperson from Kotak Mahindra Bank said the maiden NCD issue by Gaurs Group received a strong response from the market and was subscribed at competitive rates, reflecting investor confidence in the group’s fundamentals and execution capabilities.

From a financial perspective, the transaction is expected to strengthen the group’s balance sheet and lower its overall cost of capital. Vineet Singhal, Chief Financial Officer, Gaurs Group, said the successful subscription demonstrates institutional faith in the company’s business model and long-term vision. He added that the capital raised will help accelerate project execution and support expansion plans while optimising borrowing costs.

Industry experts note that access to capital markets through listed debt instruments is becoming increasingly important for real estate developers, especially non-listed entities. Gaurs Group’s successful NCD issue is seen as a positive signal for the sector, highlighting improving transparency, governance standards, and investor confidence in well-managed real estate companies.

With this fundraise, Gaurs Group strengthens its financial base at a time when developers with strong balance sheets are better positioned to scale operations, deliver projects on time, and capitalise on opportunities emerging across key residential markets.