Bengaluru's Big Bet: Cornerstone Secures ₹1,700 Cr

Bengaluru-based land holding and development firm Cornerstone is set to raise ₹1,700 crore through a mix of funding from Kotak Alternate Asset Managers (KAAML) and land monetisation.

The funds, structured as non-convertible debentures, will be deployed across multiple projects in Bengaluru — including six residential developments in the east, two commercial projects in the central zone, and land consolidation in the north.

This capital infusion comes as Cornerstone works to revive its business and resolve a dispute with L&T Finance over loans sanctioned between 2017 and 2019. Although ₹1,285 crore was approved, only ₹835 crore was disbursed, leading to project delays. Despite recovering over ₹1,400 crore, L&T and ARCIL classified the account as a non-performing asset. Cornerstone has since obtained interim relief from the Karnataka High Court.

The company is currently negotiating a full and final settlement, including the provision of alternative collateral. KAAML’s investment is conditional on clean land titles and regulatory clearances, both of which are currently protected under the court’s directive. Cornerstone continues efforts to stabilise operations while navigating legal proceedings.

News by Rahul Yelligetti.