Sobha to raise 500 Crore by QIP

By siliconindia   |   Tuesday, June 30, 2009   |    1 Comments
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Bangalore: To raise fresh capital and bring down its huge debt burden, Sobha Developers is likely to flag off its QIP (qualified institutional placement) of shares. The company has an accumulated debt close to Rs 1,900 crore. On Monday, Sobha ended the trading on a new high of Rs.214.70 with a gain of almost five percent from its previous close of Rs 204.50 on Friday. Since January, the company's share price has risen by more than 200 percent, but still it has far to go for touching the 52-week high of Rs 307.50 it had touched in June 2008. Sobha is trying to attract potential investors by offering the shares at Rs.209.40 and aiming to raise Rs 500 crore ($100 million) to Rs 650 crore ($130 million) through the QIP. It has planned to issue 30 million fresh shares, which will increase the company's share base from 72.9 million shares to 102.9 million shares. The Menon family that promotes Sobha Developers is also in mood to dilute their equity holding by around 25 percent. Currently, the Menons hold 87 percent stake in the company The company officially kickstarted the placement process at 10 minutes past five on Monday evening. Other than the QIP, Sobha is raising capital by selling a part of its 3,000-acre land bank. The company has got a commitment of Rs. 225 crore from Purna Partners, which would be infused into various projects. It is also expecting close to Rs 400 crore from the deal that is working with Shriram Properties.
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