Mumbai: Mumbai-based real estate developer Peninsula Land Ltd on Monday said it has got approval from the board to raise Rs2,500 crore through the sale of non-convertible debentures (NCDs) in the next one year.
In a filing to the BSE, the Ashok Piramal Group firm said its board has “approved its proposal of raising funds by way of issuing NCDs on private placement basis during the financial year 2017-18." The company plans to raise the fund in one or more tranches throughout the financial year. However, it has not specified how the amount would be utilized.
Peninsula Land has been looking to reduce its debt through sale of land. In 2015-16, the company’s annual report said that its priority is to deleverage its balance sheet by monetizing non-moving, long-gestation land assets.
In an interview last year, Rajeev Piramal, executive vice-chairman and managing director of Peninsula Land said the company is planning to sell a total of around 150 acres of land in three cities to raise Rs800 crore to reduce its debt. As of 30 June 2016, the company had a net debt of around Rs1,739 crore.
In 2015-16, the developer said in its annual report that its priority is to deleverage its balance sheet by monetising non-moving, long-gestation land assets. The company has also been pursuing an asset-light strategy, developing property together with landowners or in joint ventures with other developers, instead of acquiring land of its own.
Shares of Peninsula Land closed at Rs27.15, up 0.37% from the previous close while Sensex was up by 0.99% at 29,655.84.