The repayment is facilitated from the funds raised through the recent equity offering of Rs 225 crore. The debt reduction ahead of its scheduled due date is expected to help the company post better returns on grounds of lower interest payments on existing debt. Outstanding debt has been reduced from Rs 793 crore (as per 2QFY25) to Rs 693 crore.
The company has been efficiently managing and improving its debt profile with sustained positive momentum and this development comes as a significant boost towards debt reduction. Along with this, ARIIL plans to use the equity funds to accelerate its momentum for project launches, and to further strengthen its corporate functionalities. The holistic growth trajectory and year-on-year debtequity ratio performance reflect the buoyancy and bullish approach of the company towards attaining the ambitious 5x growth.
Dhaval Ajmera, Director, Ajmera Realty & Infra India Ltd, said, “This is a strategic move towards de-leveraging, and we are glad to reduce our corporate debt significantly. This exercise will help ease our debt-equity ratio and reinforce the management's commitment to higher growth and wealth creation for its stakeholders. As a company, we are dedicated towards our commitment to attaining 5x growth, and this move is a significant contributor towards that goal.”
Ajmera Realty & Infra India (ARIIL) is a real estate developer that is focused on premium developments in luxury and mid-luxury projects in the residential segment.
Ajmera Realty & Infra India surged 6.50% to Rs 883.55 after the company reported 58% jump in consolidated net profit to Rs 36.3 crore on a 38% increase in total revenue to Rs 204.1 crore in Q2 FY25 over Q2 FY24.
The scrip rose 0.86% to Rs 1,056.15 on the BSE.