Luxury home developer and rental operator Isprava Group has raised INR 250 crore in debt from Luxe Opco Holdings, marking the company’s first external funding in nearly three years and signalling an expansionary push across its marquee destinations.
According to a recent Registrar of Companies filing, the board of Isprava Vesta (Isprava’s parent) approved the issuance of 11,95,071 compulsory convertible debentures (CCDs) at an issue price of INR 2,091.93 each to mobilise the proceeds. In the same resolution, the company greenlit an INR 108 crore investment in Magnara Homes via Optionally Convertible Debentures (OCDs).
This raise is Isprava’s first since January 2023, when it secured INR 160 crore in debt from Symphony International Holdings, underscoring renewed credit confidence in India’s luxury second-home market.
Business footprint and growth trajectory
Founded in 2016 by Nibhrant Shah, Dhimaan Shah, and Rohan Lamba, Isprava designs, builds, and sells high-end villas while also offering them as fully serviced vacation homes—complete with housekeeping and private chefs—across Goa, Alibaug, and Coonoor. The company says it has delivered 200+ homes to date, positioning itself as a category leader in curated luxury living.
Financially, Isprava more than doubled revenue to INR 452 crore in FY24, posting INR 63 crore in profit as per filings and industry trackers. The company has not yet disclosed FY25 financials. Cumulatively, it has raised around USD 188 million (~INR 1,667 crore) through a mix of equity and debt, with Shah Family Trust and Godrej among its notable backers.
What the structure signals
The CCD structure at the parent level and the parallel OCD infusion into Magnara Homes together point to a capital plan that balances near-term project financing with optionality for future equity conversion. For a developer-operator straddling both build-to-sell and hospitality-style rental models, convertibles provide flexibility to align capital with asset-level cash flows and market absorption cycles.
Strategic context
Isprava’s model leans on three moats:
- Destination depth: land banking and supply discipline in hard-to-replicate micro-markets of Goa, Alibaug, and the Nilgiris/Coonoor, where zoning, infrastructure, and aesthetics constrain true luxury inventory.
- Hospitality overlay: premium services layered atop real estate ownership, which supports brand pricing and repeat rentals during non-owner occupancy.
- Governance and network: a board and cap-table featuring long-horizon Indian business families, aiding brand trust in an otherwise fragmented luxury villa market.
The road ahead
Fresh debt in INR 250 crore tranches suggests more inventory turns in FY26–FY27 pipelines—likely a mix of “for-sale” villas and operated homes—to sustain FY24’s revenue cadence while preserving brand scarcity. If project velocity holds and rentals continue to monetise idle weeks, the CCD/OCD stack could convert into equity at favourable marks, further professionalising the platform.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.