Affordable housing firm Mahaveer gets Rs. 380 crore from Piramal Finance
Affordable housing company Mahaveer Group has raised Rs. 380 crore from Piramal Finance Ltd for five of its projects in Bengaluru. The builder plans to mainly use the money as working capital and partly for refinancing purposes. Piramal has extended the money as construction finance. A small part of it will be used to give an exit to Motilal Oswal Real Estate Fund, which had invested around Rs. 22 crore at an early stage of a project.
While that transaction aimed to invest in affordable housing projects by providing patient capital in the form of long-term equity, the Piramal-Mahaveer deal mainly taps the construction financing route.
In early 2016, private equity firm Peninsula Brookfield Investment Managers Pvt. Ltd had invested Rs100 crore in mid-income housing firm Mahaveer Group’s projects in Bengaluru. Kumbala said the repayment process is on.