TARC raises Rs1,330 crore from US-based Bain Capital

6 May 2022 , 01:10 PM

TARC Limited, leading North India based Real Estate Development Company has announced that it has successfully raised Rs1,330 crore from pedigreed US based Bain Capital. The funds were infused by Bain Capital Credit in the form of secured long term NCDs. The transaction marks to be one of the largest investments aimed towards growth and development, in recent times in North India Real Estate Industry.

At around 1:13 PM, TARC was trading at Rs44 per piece lower by 5.38% on the BSE.

TARC has utilized part of this newly infused capital to retire its entire existing debt with multiple domestic lenders, thereby achieving the twin objectives of optimizing the cost of capital as well as substituting short term existing debt with patient long term capital.

These funds would serve to fund its expansion and to maintain the recently acquired growth momentum. More specifically, it would be used on an immediate basis for the development of its notable New Delhi centric land parcels meant for residential development besides the other land holdings of TARC which are strategically located in the satellite town of Gurgaon. TARC is geared to launch its proiects to bring a new wave of luxury residences in New Delhi.

Sharing details about the transaction, Amar Sarin, CEO & MD TARC Ltd. said “This capital would provide us with the much-needed growth platform in a very timely manner. The investment by a firm such as Bain Capital also demonstrates the quality of Projects and Land Bank in the company. We are currently witnessing a full blown residential real estate cycle in North India.

This capital would help us to create magic on some extremely strategic residential land parcels that we own in the New Delhi market. We now have all the ingredients in place to focus or development and take the Company to the next level thereby creating tremendous shareholder value in the process.”

Incidentally, this happens to be the third transaction by TARC with venerable foreign institutions in the last 12 months. TARC has sold some of its non-core land assets to Blackstone and ESR with the obiective to deleverage its balance sheet and sustain its continued focus on Residential Developments.