Sobha may use QIP money for new projects

Sobha may use QIP money for new projects
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First Published: Tue, Jun 02 2009. 12 39 AM IST

 Raising capital: A Sobha Developers project in Bangalore. Hemant Mishra / Mint
Raising capital: A Sobha Developers project in Bangalore. Hemant Mishra / Mint
Updated: Tue, Jun 02 2009. 12 39 AM IST
Bangalore: Realty firm Sobha Developers Ltd has been granted approval by market regulator Securities and Exchange Board of India to raise up to Rs1,500 crore through qualified institutional placements (QIP).
Raising capital: A Sobha Developers project in Bangalore. Hemant Mishra / Mint
However, people familiar with the development said the company might not raise all the money at one go. Instead, it would raise Rs1,000 crore by the end of the current fiscal through a combination of QIP, sale of land and money received through a recently formed special purpose vehicle, they said on condition of anonymity.
The property developer has a land bank of about 300 acres.
The realtor would also use the money raised through QIP on new projects and not to clear any of the approximately Rs1,850 crore debt it has on its books, they said.
The firm is also looking at hosting road shows in Hong Kong, Singapore, London and Mumbai ahead of its 17 June extraordinary general meeting that has been called to seek shareholder approval for the QIP.
cnbctv18@livemint.com
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First Published: Tue, Jun 02 2009. 12 39 AM IST