Phoenix Mills raises Rs282 crore through QIP

Mumbai: Real estate developer Phoenix Mills Ltd on Wednesday said it has raised ₹ 282.59 crore by selling shares to institutions in a qualified institutional placement (QIP) which opened on 9 July.

In a statement to BSE, the company said shares were issued at ₹ 353.60 each, a discount of 5% to the floor price of ₹ 372.2.

Phoenix had obtained shareholder approval to raise up to ₹ 1,000 crore through QIPs. The capital-raising initiative was passed by the firm’s board of directors on 11 May and was subsequently approved by its shareholders on 15 June.

According to the firm’s exchange filing on 11 May, Phoenix Mills plans to utilize the funds for capital expenditure, working capital requirements, funding growth opportunities, including investing in existing and proposed business ventures, reduction of debt and general corporate purposes.

On 31 March, the firm had a debt of ₹ 3,046.1 crore. It reported a revenue of ₹ 1,653.3 crore and profit of ₹ 35.4 crore in 2014-15.

Apart from Phoenix Mills, 20 listed companies have raised almost ₹ 12,317.4 crore by selling shares to institutions so far this year, according to capital market tracker Prime Database. Last year, 33 companies raised ₹ 31,684.2 crore through this route.

At 9.40am, shares of Phoenix Mills were trading at ₹ 365.65, up 1.23% on the BSE, while the benchmark Sensex was trading at 28,108.91 points, up 0.63%.