India's Kalpataru, Shangrila Infracon plan debt fundraise via private credit funds, sources say

MUMBAI: Two Indian real estate companies are set to raise an aggregate of around 26 billion rupees ($269 million) through sale of shorter duration bonds, two sources aware of the matter said on Wednesday.

Kalpataru Properties plans to raise 16.35 billion rupees through four-year and nine-day bonds and Shangrila Infracon India aims to raise 9.50 billion rupees through three-year notes, the sources added.

They are likely to receive interest from private credit funds, which have been on the lookout for decent-sized deals, one of the sources said.

The sources requested anonymity as they are not authorized to speak to the media. The real estate firms did not respond to Reuters emails seeking comment.

According to the sources, Kalpataru Properties, which is returning to debt markets after a gap of two years, will offer a coupon of 8%, payable on a quarterly basis. The final redemption will include an undisclosed premium to enhance the effective yield.

GSS India Opportunities Alternate Investment Fund has committed to 50% of Kalpataru’s issue, while the rest would be raised through bidding, the sources added. GSS India did not reply to a Reuters email seeking comment.

This is Shangrila Infracon’s maiden issue. The firm is still in talks with investors and will announce the issue in coming days, the bankers added.

Real estate received the highest allocation from private credit funds in 2025, ahead of sectors like healthcare and industrial products, according to a report from consulting firm EY.

The share of private credit funds is also rising as banks remain selective in lending to real estate companies, merchant bankers said.