Embassy Developments Board Raises NCD Fundraising Limit Nearly Fourfold to ₹1,570 Crore

Board Approves Fourfold Expansion in Debt Fundraising Capacity

Real estate developer Embassy Developments has approved increasing its fund-raising limit through non-convertible debentures (NCDs) to up to ₹1,570 crore, nearly four times the previously approved size. The company's board approved the raising of additional funds aggregating up to ₹1,170 crore through the issuance of additional number of debentures on a private placement basis, in one or more tranches, thereby increasing the overall issue size from up to ₹400 crore to up to ₹1,570 crore.

Terms and Structure

The company will issue senior, secured, redeemable, unrated and unlisted NCDs on a private placement basis in one or more tranches. Each debenture will have a face value of ₹1,00,000. The securities are not proposed to be listed on any stock exchange.

The company indicated that detailed terms such as tenure and coupon will be set by the committee at the time of each issuance. The company has positioned the move as an enabling authorisation, allowing issuances in one or more tranches depending on funding needs.

Use of Proceeds

The actual issuance would depend on the company's funding requirements, including refinancing existing debt, project construction, working capital requirements and other general corporate purposes. The actual allotment will be based on its requirements, indicating flexibility rather than an immediate full issuance of the entire ₹1,570 crore.

Company Portfolio and Scale

Embassy Developments has a presence across seven Indian cities with more than 40 residential and commercial projects spanning 38 msf of leasable and saleable area. The company has a land bank of 3,251 acres. As of FY26, the total estimated gross development value (GDV) of its portfolio stood at around ₹57,700 crore.

Recent Activity and Outlook

The company's pre-sales for FY26 stood at ₹4,631 crore, while collections during the year were ₹1,673 crore. It launched six projects with a GDV of ₹16,300 crore and incurred construction expenditure of ₹1,182 crore during the year.

Last month, the company signed a non-binding memorandum of understanding (MoU) with the Uttar Pradesh government under the Invest UP framework for a proposed large-scale commercial development in Lucknow. The indicative proposal envisages the development of 2.5-3 million square feet of commercial real estate with an investment of ₹1,500 crore.