Omaxe to raise Rs 800 cr

Written by Agencies | New Delhi | Updated: Mar 31 2010, 23:27pm hrs
Real estate developer Omaxe today said it is planning to raise Rs 800 crore through private placement of shares and stake sale at projects level, mainly to repay part of its debt.

"We intend to raise Rs 800 crore next fiscal mainly to retire part of our debt, which stands at Rs 1,650 crore," Omaxe Chairman Rohtas Goel said.

He said the funds would be raised through Qualified Institutional Placement (QIP) or a combination of QIP and private equity at projects level.

Goel said the company would launch QIP when the market condition is conducive. "The size of the issue has not been decided yet and would depend on the market condition at that point in time," he added.

Asked about the stake the company would dilute to raise funds through QIP, he said equity dilution could be about 20 per cent. At present, promoters have 90 per cent stake in the company.

Omaxe is developing 54 projects, including 22 integrated townships, 21 group housing projects, nine commercial and two hotels. Besides, there are three hi-tech townships in Allahabad, Bulandsahar and Lucknow.

The company is present in 31 cities and 10 states across the country.

Omaxe reported a consolidated net sales of Rs 280.20 crore for the quarter ended December 31, 2009, compared with Rs 180.42 crore in the year-ago period, registering a growth of 55 per cent.

Consolidated Net Profit for the quarter increased to Rs 28.46 crore, compared with Rs 5.88 crore posted in the quarter ended December 31, 2008.