According to CLSA, the total debt in the books of the developers as of FY11 is over Rs. 80,000 Cr. With most developers continuing to being optimistic about the real estate market and acquiring land and developing projects, the gap in credit supply and demand has left them with lesser options to arrange for funds. Most developers already have highly leveraged balance sheets and are finding it increasingly tougher to arrange for capital.

Thus with a mission of facilitating the realty sector's need for finance, we are planning to set up a strong funding arm. This, subject to regulatory approval, would be composing of the following: – (i) Realty focused NBFC and (ii) A Realty Fund

Realty Focused NBFC

We are planning and proposing to set up our Realty focused NBFC business which will be focusing on Loan against Property for builders, as secured lending is an intelligent way to provide loans which helps builders to hold property for a longer period or can assure last-mile funding. This Realty focused NBFC will be set up subject to regulatory approvals

Realty Fund

We propose to try and start a Mezzanine Fund, subject to regulatory approvals, having an investment objective of achieving balanced and optimum returns by investing through equity and equity linked instruments.