Mumbai-based Oberoi Realty closed the deal with Alpha Wave, a global investment firm, by issuing 277,778 Series A compulsorily convertible preference shares and 10 Class A equity shares in I-Ven Realty. This translates to a 21.74% stake on a fully diluted basis. The deal places a Rs5,750 crore valuation on the joint venture.
Following the transaction, Oberoi Realty retains a 39.13% stake in I-Ven, while the remainder is held by company promoter Vikas Oberoi. A five-year lock-in clause binds all stakeholders, with Alpha Wave having structured exit options after the period, including a stake sale to a third party or a potential merger with Oberoi Realty.
While the Rs1,250 crore infusion brings significant capital to a previously inactive venture, the transaction also draws attention to broader financial manoeuvring. Vikas Oberoi has pledged over 75% of his nearly 68% personal stake in Oberoi Realty — amounting to around 24.62 crore shares. The company claims this does not affect ownership control, but market observers may question the risks and rationale behind such extensive pledging.
I-Ven Realty, formed in 2005 between Oberoi Realty and Morgan Stanley Real Estate, was restructured after Oberoi bought out Morgan Stanley’s stake in 2019. The fresh investment from Alpha Wave could reactivate the entity, potentially leading to new development projects, likely in the luxury or mixed-use segment in Mumbai.
The transaction comes at a time when global investors are showing renewed interest in Indian real estate, especially in the premium residential and commercial sectors. Mumbai, with its constrained land availability and steady demand at the top end, remains a compelling market.
Whether this is a one-off financial play or the start of a broader strategic shift by Oberoi Realty and Alpha Wave remains to be seen. What’s clear is that the deal brings a high-profile investor into an asset that has so far delivered little, but now has the capital to turn things around.
The next phase for I-Ven will be closely watched—not only for how it uses this capital, but also for what it reveals about the direction of Oberoi Realty and the evolving dynamics between domestic developers and global private equity in India’s real estate sector.
