Ajmera Realty and Infra India Limited (NSE: AJMERA) convened a board meeting on September 10, 2026, approving a proposal to issue Non-Convertible Debentures (NCDs), bonds, or other debt instruments on a private placement basis. The move signals the Mumbai-based real estate developer's intent to raise fresh capital through the debt route, even as its latest dividend payout reflects a significant pullback in shareholder returns.

Dividend Details: Sharp Reversal in FY26

At its board meeting held on May 25, 2026, Ajmera Realty's directors recommended a final dividend of ₹1 per equity share for FY26. This marks a 78% decline from the ₹4.50 per equity share declared in FY25, and is the lowest dividend the company has paid since FY21, when it declared ₹1.40 per share. With quote data unavailable at the time of publication, a precise dividend yield calculation cannot be provided; investors should compute yield based on the prevailing market price against the ₹1 per share payout.

Dividend History: A Volatile Trend

Ajmera Realty's dividend history over the past seven fiscal years reveals considerable inconsistency, with no sustained upward trajectory:

The dividend had climbed steadily from ₹1.40 in FY20 to a peak of ₹4.50 in FY25, before collapsing sharply to ₹1 in FY26. This reversal breaks a four-year growth streak and raises questions about near-term cash flow prioritisation, particularly given the simultaneous decision to tap debt markets through the NCD route.

NCD Issuance: Debt Capital Strategy

The board's approval for NCD or bond issuance on a private placement basis is a commonly used mechanism among real estate companies to fund land acquisitions, project construction, or refinance existing obligations. Private placement NCDs typically carry fixed coupon rates and are placed with institutional investors or high-net-worth individuals. The specific quantum of the proposed issuance, the coupon rate, and the tenor have not been disclosed in the exchange filing. Investors should monitor subsequent filings on NSE for these details, as they will determine the incremental debt burden on the company's balance sheet.

Company Background

Ajmera Realty and Infra India Limited is a listed real estate developer with operations primarily in Mumbai, Bengaluru, and Pune. The company has an ISIN of INE298G01027 and is listed on the NSE. Its project portfolio spans residential developments, with a focus on mid-income and premium housing segments.

What This Means for Investors

The combination of a steep dividend cut and a fresh debt-raising initiative warrants careful scrutiny. A ₹1 per share dividend against a historical high of ₹4.50 suggests the company may be conserving cash, possibly to fund project pipelines or service existing liabilities. The NCD issuance, if material in size, will add to the company's finance costs and could pressure earnings in subsequent quarters. Investors holding AJMERA for income should note that the dividend yield has materially compressed relative to FY25 levels. Further clarity on the NCD size, end-use of proceeds, and management commentary on the dividend reduction will be critical inputs before drawing conclusions on the company's financial trajectory.