Ricardo Constructions Secures Rs.505 Crore for Projects and Debts
Real Estate

Ricardo Constructions Secures Rs.505 Crore for Projects and Debts

Ricardo Constructions, a key player in the construction domain and a wholly-owned subsidiary of the renowned Shapoorji Pallonji Group, has successfully secured a substantial investment of ?505 crore from the Asia Pragati Strategic Investment Fund. This strategic move aims to bolster ongoing projects and alleviate debt burdens incurred from previous financial engagements, as per insiders familiar with the development.

The investment, orchestrated by the Asia Pragati Fund and managed by global alternative investment firm PAG, marks a significant milestone for Ricardo Constructions. While PAG declined to comment on the transaction, Shapoorji Pallonji and Co remained unresponsive to ET's request for clarification.

The funds raised by Ricardo Constructions have been allocated towards the completion of existing projects and the repayment of debts amounting to ?405 crore, sourced from entities such as the Piramal group company and HDFC Bank, as per disclosures made by the company to the NSDL.

A noteworthy portion of the capital injection will be directed towards the culmination of a residential project situated in Mulund, a prominent suburb of Mumbai. Originally initiated by Nirmal Lifestyle in collaboration with the United States Tennis Association (USTA) in 2009, the Mulund luxury residential project underwent a change of ownership to Ricardo Constructions. With the project's deadline extended to March 2026 by the MahaRERA in February 2023, Ricardo Constructions aims to expedite the construction process with the newly acquired funds.

In addition to the financial boost from the Asia Pragati Fund, Ricardo Constructions benefits from the unconditional guarantees provided by affiliated entities. SD Corporation, another prominent member of the Shapoorji group, extends an unconditional guarantee amounting to ?600 crore, while Honcho Properties commits up to ?330 crore, underscoring a collective effort towards project success and financial stability.

The infusion of capital from the Asia Pragati Strategic Investment Fund not only propels Ricardo Constructions towards project completion but also reaffirms the group's commitment to delivering excellence in the construction sector while navigating complex financial landscapes.

Ricardo Constructions, a key player in the construction domain and a wholly-owned subsidiary of the renowned Shapoorji Pallonji Group, has successfully secured a substantial investment of ?505 crore from the Asia Pragati Strategic Investment Fund. This strategic move aims to bolster ongoing projects and alleviate debt burdens incurred from previous financial engagements, as per insiders familiar with the development. The investment, orchestrated by the Asia Pragati Fund and managed by global alternative investment firm PAG, marks a significant milestone for Ricardo Constructions. While PAG declined to comment on the transaction, Shapoorji Pallonji and Co remained unresponsive to ET's request for clarification. The funds raised by Ricardo Constructions have been allocated towards the completion of existing projects and the repayment of debts amounting to ?405 crore, sourced from entities such as the Piramal group company and HDFC Bank, as per disclosures made by the company to the NSDL. A noteworthy portion of the capital injection will be directed towards the culmination of a residential project situated in Mulund, a prominent suburb of Mumbai. Originally initiated by Nirmal Lifestyle in collaboration with the United States Tennis Association (USTA) in 2009, the Mulund luxury residential project underwent a change of ownership to Ricardo Constructions. With the project's deadline extended to March 2026 by the MahaRERA in February 2023, Ricardo Constructions aims to expedite the construction process with the newly acquired funds. In addition to the financial boost from the Asia Pragati Fund, Ricardo Constructions benefits from the unconditional guarantees provided by affiliated entities. SD Corporation, another prominent member of the Shapoorji group, extends an unconditional guarantee amounting to ?600 crore, while Honcho Properties commits up to ?330 crore, underscoring a collective effort towards project success and financial stability. The infusion of capital from the Asia Pragati Strategic Investment Fund not only propels Ricardo Constructions towards project completion but also reaffirms the group's commitment to delivering excellence in the construction sector while navigating complex financial landscapes.

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