Gaurs Group Raises ₹440 Crore via Maiden NCD Issue Subscribed by Three Mutual Funds
Gaurs Group Completes First Public NCD Issue, Raises ₹440 Crore
Gaurs Group has successfully completed its maiden public issuance of non-convertible debentures (NCDs), raising ₹440 crore, marking a significant milestone in the developer's capital-raising strategy. The NCDs have been subscribed by three leading mutual funds in the country, with the process completed over a period of nearly three months.
Structure and Listing
The debentures, issued by the group's holding company Gaursons India Pvt Ltd, will be listed on the National Stock Exchange (NSE). Kotak Mahindra Bank acted as the sole arranger for the transaction. This public listing is notable: only a limited number of non-listed real estate companies in India have successfully raised capital through listed debentures with participation from multiple institutional investors.
Capital Deployment and Strategic Purpose
Proceeds from the issue will be utilised for the group's business requirements, including land acquisition, construction and project execution, repayment of higher-cost borrowings, and general corporate purposes. Since the funds have been raised at the holding company level, they will also provide liquidity and financial flexibility to the group's operating subsidiaries.
Vineet Singhal, Chief Financial Officer at Gaurs Group, said the funds will support the firm's expansion plans and help it accelerate execution across projects while optimising cost of capital.
Financial Position and Debt Profile
The group's total external debt stood at around Rs 2,086 crore as of August 2025, up from Rs 1,617 crore as of March 2025, according to a report by credit rating agency Icra. However, the firm's operational trajectory remains positive: its collections are projected to improve by 30 to 32 per cent in FY26 from Rs 1,695 crore recorded for FY25.
Developer Track Record
Gaurs Group has so far developed more than 100 million square feet (msf). It has delivered 75,000 units across 70 projects, spanning luxury residential, commercial and retail developments. The developer's recently launched projects include the luxury residential project Gaur Chrysalis in Sector 22-D, Yamuna Expressway; Gaur NYC Residences in Ghaziabad; and The Legacy in Greater Noida.
The commercial portfolio also contributes meaningfully: its commercial projects, Gaur City Mall and Gaur Central Mall, have around 92 per cent occupancy, with a leasable area of 1.04 msf as of June 2025, which is estimated to generate annualised rentals of Rs 130 to 135 crore.
Market Context
The NCD issuance arrives as NCR real estate markets experience renewed momentum. Residential property prices in Noida, Greater Noida and Ghaziabad climbed about 24% year-on-year in Q3 2025, driven by strong demand—especially for luxury and premium homes—and improved connectivity. Greater Noida and Ghaziabad together delivered over two-thirds of NCR's new supply in the first half of 2025, underscoring the developer's regional positioning.
Sarthak Gaur, Director, Gaurs Group, said the successful subscription of the NCD issue underscores the group's financial resilience and its growing credibility with institutional investors.