Omaxe Ltd has successfully allotted 156 Non-Convertible Debentures (NCDs) worth ₹15.60 crore as part of its fundraising program. These NCDs offer a 12% IRR and are secured by project assets and promoter guarantees.
Omaxe Ltd Allots ₹15.60 Crore in NCD Tranche
156 NCDs allotted, ₹15.60 crore raised ## What just happened Omaxe Ltd has completed the fifth tranche of its fundraising initiative by allotting 156 Unrated Senior Secured Non-Convertible Debentures (NCDs). This allotment has raised ₹15.60 crore. The NCDs carry a coupon rate offering a committed return of 12% Internal Rate of Return (IRR). With this, the company has cumulatively allotted 1,102 NCDs, amounting to a significant portion of its ₹199.40 crore authorized issuance size. ## Why this matters This successful allotment demonstrates Omaxe Ltd's continued ability to tap into debt markets to fund its operations and projects. The 12% IRR return for investors, coupled with specific project asset security and promoter guarantees, provides a structured and potentially attractive investment option within the real estate sector. The issuance helps the company meet its financing needs and provides investors with a defined return. ## The backstory This issuance is part of a larger fundraising program by Omaxe Ltd, which has an authorized size of ₹199.40 crore for these NCDs. The program aims to raise capital through private placement of NCDs, with previous tranches contributing to the cumulative allotment of 1,102 NCDs to date. The NCDs have a tenure of up to 54 months from July 16, 2025. ## What changes now With this tranche, Omaxe Ltd has advanced its fundraising target. The company will continue to service these NCDs, with full redemption expected at the end of the 54-month tenure. Investors who participated in this tranche will have their investments secured by specific project assets and corporate guarantees. ## Risks to watch Investors should be aware that the NCDs are unrated, meaning a higher reliance on the company's performance and project cash flows. While a 3% additional IRR penalty applies for payment delays, the primary risk lies in the company's ability to generate sufficient cash flow from the secured projects to meet redemption obligations. ## Peer comparison Real estate developers frequently use NCDs and similar debt instruments to raise funds. The 12% IRR offered is competitive within the sector for secured, albeit unrated, debt instruments. However, specifics like asset backing and promoter guarantees can vary significantly across different companies' offerings. ## Context metrics (time-bound) * Amount Raised in this Tranche: ₹15.60 crore * Number of NCDs Allotted: 156 * Committed Return (IRR): 12% * Cumulative Allotment to Date: 1,102 NCDs * Total Authorized Issue Size: ₹199.40 crore * NCD Tenure: Up to 54 months * NCD Maturity Date: July 16, 2025 (initial allotment date) ## What to track next Investors should monitor Omaxe Ltd's project execution and cash flow generation from the secured projects. Continued successful fundraising through subsequent tranches of this NCD program will also be a key indicator of the company's financial health and market access.
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