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Omaxe to raise Rs1,800 cr, increase FII limit to 40%

Omaxe to raise Rs1,800 cr, increase FII limit to 40%
PTI
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First Published: Mon, Jun 08 2009. 06 44 PM IST
Updated: Mon, Jun 08 2009. 06 44 PM IST
New Delhi: Realty developer Omaxe on Monday said it will raise Rs1,800 crore through various means, including issuing securities to qualified institutional buyers (QIBs) on a private placement basis, and hiking the FII limit in the company to 40%.
The company will raise up to Rs1,800 crore by various means including issuance of further securities to persons other than the existing equity shareholders and also by way of qualified institutional placement (QIP), Omaxe said in a filing to the Bombay Stock Exchange.
The board of Omaxe has given its approval for raising the funds, it said.
Further, the board has also approved the rise in the limits of holding by the registered foreign institutional investors (FIIs) to up to 40%. At present the limit is 24%.
Besides, Omaxe’s board has also decided to increase the authorised share capital of the company to Rs360 crore from Rs210 crore, the filing said.
The real estate firm would convene an extra ordinary general meeting (EGM) for seeking approval of its investors for raising of funds, and increasing the FIIs’ limit and authorised capital.
Reeling under acute cash crunch, a host of real estate companies are now resorting to QIP and preferential allotment of warrants to promoters to strengthen their cash balance.
Realty firms like Unitech, Parsvnath, Sobha Developers, HDIL, Puravankara, Anantraj Industries, Akruti City and Orbit Corp are looking to raise additional long-term funds through sale of shares, mostly through QIP, where shares are sold to institutional investors.
Unitech plans to raise over Rs11,000 crore, whereas HDIL is planning to raise about Rs3,000 crore through QIP and Rs850 crore through promoter warrants.
Further, Parsvnath and Anant Raj Industries are also planning to raise Rs2,500 crore and Rs2,000 crore, respectively.
Shares of Omaxe on Monday slipped 10% and hit its lower trading limit of Rs109.25 on the BSE.
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First Published: Mon, Jun 08 2009. 06 44 PM IST
More Topics: Real estate | Omaxe | Unitech | Parsvnath | FII |