Sobha Developers, Bangalore based realtor, said it is raising Rs 225 crore from Purna Partners, a private equity fund. The investment will be made at the special purpose vehicle (SPV) level.
In its communique to the stock exchanges, the company siad that it has already received Rs 25 crore from the private equity investor. The raised funds will be used towards the developments of projects in Bangalore and Pune. Sobha is identifying land parcels for developing residential as well commercial projects. It will also undertake mixed development projects in these cities.
Each of the projects will be valued separately and Sobha as well as Purna partners will hold stakes in them. Besides this, Sobha Developers will also execute the projects as the principal contractor. The number of projects will be decided by the investor.
Sobha Developers declined to comment on the transaction saying, " we are in a silent phase and hence cannot talk."
Fund Raising Plans
Sobha Developers is also looking at raising funds through qualified institutional placements (QIPs). The firm is reportedly looking at raising Rs 1,000 crores through QIPs.
The company’s board has also called an extra ordinary general meeting on June 17 to consider increasing the share capital of the company to up to Rs 1,500 crores. It is also considering increasing the limit of investment by foreign institutional investors (FII) in equity shares up to 100% of the share capital of the company.
According to a report in DNA Money, the company is also looking at raising money by diluting stakes in its non core assets or non-realty businesses such as interior and wooden furniture, building materials, mattresses and a design studio. Sobha plans to spin-off these businesses into different companies and then offload stakes in them. The amount raised will be used primarily to pay its debts and to fund it realty projects.
The realtor is also reportedly looking at raising funds by selling 200 acres from its 3,000-acre land bank.
