Sunteck Realty issues ₹70 crore commercial paper at 7.75%

Sunteck Realty issued ₹70 crore of commercial paper at an annual interest rate of 7.75% on 21 October 2026, the Mumbai-based developer said. The unsecured instrument has a 180-day tenure and is due to mature on 19 April 2027. The company said it will use the funds to meet working-capital requirements.

The paper has a face value of ₹5 lakh per unit and is proposed to be listed on BSE. Principal and interest are payable at maturity. The company’s announcement says the instrument carries no special rights, interests or privileges.

Rating and operating context

India Ratings assigned the commercial paper an IND A1+ rating on 1 October 2026. The agency also affirmed Sunteck Realty’s bank facilities at IND AA/Stable. These are separate ratings: the A1+ grade applies to the short-term paper, while AA/Stable relates to bank facilities.

In its rating rationale, India Ratings cited the company’s operational performance in FY26 and the resulting increase in its scale of operations. The agency put the gross development value of Sunteck Realty’s ongoing projects at about ₹7,100 crore and said the company had sold more than 65% of the total developed area.

The short-term borrowing comes as the company reports growth in sales and collections. In the quarter ended June 2026, pre-sales were about ₹787 crore, up 20% year on year, while collections increased 17% to ₹409 crore. Consolidated net profit rose 26.45% to ₹42.27 crore from ₹33.43 crore in the year-earlier quarter. Revenue, however, fell 43.5% sequentially to ₹191.56 crore from ₹339 crore in the March 2026 quarter.

Sunteck Realty has said it is targeting 25% to 30% year-on-year growth in pre-sales and collections in FY27. India Ratings said the company plans to launch two to three projects in the ultra-luxury and mid-market segments over FY27 and FY28. The commercial paper is a company-level financing instrument and is not tied to a specific project. No buyer-facing changes or terms were announced.

Repayment due in April

The key date for this issuance is 19 April 2027, when the principal and interest become payable. The company’s Q2 FY27 results and earnings call are scheduled for 27 October 2026. Investors will be able to assess the next quarter’s performance against the company’s stated sales and collections growth target, while the paper’s maturity will be the next financing milestone for holders.