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Photo: Mint

Phoenix Mills to raise around 1,000 crore through QIP

The fundraise is planned not just to strengthen the balance sheet to tide through the economic scenario but also to take advantage of inorganic opportunities that may arise from the pandemic

MUMBAI : Retail focused real estate developer The Phoenix Mills Ltd has started work on its plans to raise around 1,000 crore through a qualified institutional placement (QIP) to bolster its balance sheet and prepare a war chest for distressed asset acquisitions, said two people aware of the development.

The company’s board recently approved a resolution allowing it to raise up to 1,100 crore through equity or debt, as well as a resolution to raise 100 crore by allotment of convertible warrants.

“Phoenix Mills has appointed UBS, CLSA and Kotak Mahindra Capital to help it raise 1,000-1,100 crore. They will hit the market with a QIP, which could be launched within this quarter. It will be the first listed real estate company to tap the markets for fundraise through QIP since covid-19 began," said the first person cited above, requesting anonymity.

According to the second person cited above, the fundraise is planned not just to strengthen the balance sheet to tide through the economic scenario but also to take advantage of inorganic opportunities that may arise from the pandemic.

“Even now, they have over 500 crore of cash on the balance sheet. So, the fundraise is more aimed at inorganic opportunities that are going to come out of the pandemic. There will be many distressed properties in the market due to the impact of the pandemic and the lockdown, and they are keen on snapping up such properties to grow their portfolio," said the second person.

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