Mumbai-based listed realtor Mahindra Lifespaces is planning to raise up to Rs 750 crore or $124.8 million through private placement of non convertible debentures or other debt securities, as per a stock market disclosure.
The board of directors has approved the plan and the firm will seek shareholders’ nod for the same at the ensuing annual general meeting. The annual general meeting of the company is scheduled on August 7, 2014.
It did not disclose the purpose of raising the fund.
The real estate arm of $16.5 billion Mahindra Group has overall borrowing limit of Rs 1,500 crore which is valid till March, 2015.
Meanwhile, the company also announced its foray into affordable housing segment recently. It launched a new business vertical which will target families with combined income of Rs 20,000 – Rs 40,000. The project called Happinest will be first launched in Chennai and then Mumbai Metropolitan Region.
“Happinest is our strategic endeavor to address the large and under-served home ownership market in India by using our manufacturing and innovation mindset to create mass solutions at affordable prices,” said Arun Nanda, chairman, Mahindra Lifespaces.
The company, which has 11.3 million sq ft under construction across Mumbai, Pune, Nagpur, Gurgaon, Faridabad, Jaipur, Chennai and Hyderabad, clocked revenue of Rs 705.2 crore in FY14, down from Rs 738.3 crore in FY13 while net profit declined from Rs 141.3 crore in FY13 to Rs 100.6 crore.
(Edited by Joby Puthuparampil Johnson)