Realty firm Puravankara Projects Ltd plans to raise up to Rs 1,500 crore by issuing non-convertible debentures for execution of its projects.
The Bengaluru-based firm also proposes to change its name to Puravankara Ltd.
Puravankara has sought shareholders approval for raising funds through NCDs and changing the name of the company through postal ballot.
In a postal ballot notice, it said: “The company in order to execute various projects has to borrow money from banks and other financial institutions as a means of finance…
“The Board of Directors of the company are contemplating the feasibility of borrowing money through the issue of non-convertible debentures, subject to the approval of the members of the company by passing a special resolution,”
The approval has been sought to offer or invite subscriptions for redeemable non-convertible debentures in one or more series or tranches aggregating up to Rs 1,500 crore.
“It is proposed to change the name of the company from Puravankara Projects Limited to Puravankara Limited, to reflect the strength of the brand Puravankara, which is also in line with the registered trademark,” the notice said.
Earlier this month, the company reported 67 per cent decline in consolidated net profit at Rs 10.24 crore for the quarter ended June 30, on lower sales. Its net profit stood at Rs 30.72 crore in the year-ago period.
Its income from operations fell 32 per cent to Rs 311.35 crore in the first quarter of the current fiscal from Rs 456.52 crore in the year-ago period.
“We are witnessing a strengthening of our business as compared to earlier periods on project deliveries, collections, accelerated sales from ready-to-move-in and a favourable balance-collections vs balance-cost-to-go owing to many of our current projects having sold over 50 per cent,” Company’s MD Ashish Puravankara had said.
Puravankara Projects has presence in Bengaluru, Kochi, Chennai, Coimbatore, Hyderabad and Mysore, Mumbai and Pune. It has around 25 million sq ft of projects under development with additional about 85 million sq ft in projected development over the next few years.