Adani Group’s non-banking financial company (NBFC) arm Adani Capital Pvt. Ltd has agreed to provide Rs 50 crore to Pune-based real estate developer PRA Realty.
The developer will use the funds to build an iconic mixed-use project at Shivaji Nagar in Pune, Adani Capital said in a statement.
PRA Realty, which is promoted by Rustom Bharucha, currently has close to 5 million sq ft under development and has delivered over 1 million sq ft, according to the statement.
“Our philosophy is to back growing and dynamic real estate developers... We look forward to extending our relationship with PRA Realty and exploring opportunities with the group as it grows,” said Gaurav Gupta, CEO of Adani Finserve Pvt. Ltd, the parent of Adani Capital.
Adani Capital, which was founded in 2016, marked Adani Group’s foray into the financial services business with a focus on wholesale and retail lending.
The investment in PRA Realty's project comes at a time when capital from NBFCs has become the main source of funding for developers. Real estate companies across the board have been aggressively borrowing from NBFCs to finish construction of ongoing projects and expand their business.
Early this month, Piramal Finance Ltd, the NBFC arm of Piramal Enterprises Ltd, invested Rs 1,100 crore ($171 million) in a bunch of projects of Bengaluru-based developer Embassy Group.