Realtor Housing Development and Infrastructure Ltd (HDIL) couldn’t have timed its proposal to raise $300 million (Rs1,416 crore) through a qualified institutional placement (QIP) better.
HDIL stock has rallied 66% in the post-election market. In addition, Indiabulls Real Estate Ltd’s successful QIP of $550 million and Unitech Ltd’s board approval to issue warrants to its promoters, intending a stake increase of 10% in the next 18 months, has lifted market sentiment.
HDIL has also passed a resolution to make a preferential allotment of 26 million shares to promoters at the QIP price. A meeting of shareholders is set to be held on 17 June.
HDIL managing director Sarang Wadhawan told CNBC-TV18 that the company plans to reduce debt on its books by 50% in the current fiscal.
The company’s current debt is about Rs4,000 crore. The company also has plans to launch two new projects in the next quarter.