Provident Housing, a subsidiary of Puravankara, is currently in talks with several investors to secure growth capital, as stated by Mallanna Sasalu, CEO, of Provident Housing.
Reports indicate a target of raising ₹1,000 crore to support its expansion initiatives. “Even at a group, we are talking to seven to eight different investors and will announce it as soon as anything gets finalised. As a real estate developer, we need capital to grow and are looking to raise the same,” said Sasalu during the launch of the company’s ESG report.
He stressed the importance of capital for their growth as a real estate developer, and the funds align with their ambitious expansion strategy, encompassing a project pipeline of 5.8 million sq ft, equivalent to approximately 5,000 units slated for launch by the end of this fiscal year. Further, it is currently engaged in the development of approximately 7.8 million sq ft of projects.
Affordable housing
The company remains committed to its niche in affordable housing, offering residences with ticket prices ranging from ₹45 lakh to ₹1.5 crore, featuring 1BHK, 2BHK, and 3BHK options. He also highlighted the growing demand for affordable housing in India, constituting 65-70 per cent of total urban housing sales.
In the second quarter, Provident sold 1.06 million sq ft of area, marking a 147 per cent y-o-y increase, while the number of units sold stood at 1,047 compared with 459 units in the same quarter last year. It also aims to sustain this sales momentum, targeting an annual growth range of 30 to 40 per cent.
Expanding strategically, the company has ventured into Mumbai, approaching the densely populated market with caution. The company acknowledges the localised nature of the business and plans to take it one project at a time, leveraging their current position for optimal growth.
In Q2, Puravankara Ltd revenue from operations grew by 53.8 per cent y-o-y to ₹368.33 crore from ₹239.48 crore in the second quarter of last year. On a sequential basis, revenue from operations increased by 35 per cent. EBITDA for the quarter stood at ₹98 crore, marking a growth of 69 per cent y-o-y.