The parent group involved in this transaction has a multi-dimensional portfolio of companies which operates in various business domains across the India. The core businesses of the group are security solutions, and mall/integrated facilities management. The group has also diversified into real estate development and service apartments.
The said group was faced with some liquidity issues due to inadequate capital raising in the real estate projects, and capital generated in other group companies being used to fund the construction activities.
With the real estate market reeling from a slowdown, the group was looking for an immediate solution to get over the liquidity crunch and rightly finance its operating entities.
Inadequate funding in real estate projects of the parent company and capital movement across entities leading to cash flow mismatches across the group.