Mumbai-based Nirlon Ltd, a textile firm turned real estate developer, is raising Rs 75 crore through a preferential allotment to housing finance major HDFC and other investors, according to a disclosure.
Nirlon is developing an IT Park at Goregaon in Mumbai and will sell a 24.8 per cent to the consortium of investors which also include Athena India Opportunities, Geraldton Finance Ltd and Real India Invest Aktiengesellschaft besides HDFC.
Real India Invest Aktiengesellschaft, which already holds a 7.3 per cent stake in Nirlon, will increase its holding to 14.03 per cent with this investment. Geraldton Finance, a subsidairy of Mauritius-based Bernina Private Equity which is advised by Monterosa Group (an affiliate of BTS Investment Advisors), will take a 6.07 per cent stake.
SEBI registered foriegn venture capital firm Athena India Opportunities will take a 3.42 per cent interest while HDFC will hold 1.27 per cent.
The board of Nirlon has decided to issue the shares at Rs 55 per unit.
The share price of the firm fell 4 per cent to close at Rs 50.4 on Friday. Nirlon's share price had reached a 52-week high of Rs 84.35 last July.
Nirlon has constructed the first two phases (out of four) of the Nirlon Knowledge Park, which is located on a 23 acre campus in Goregaon. A total 16.75 lakh square feet area has been constructed in these two phases over 10 lakh square feet area is already generating income. The tenants of Nirlon Park include companies like IBM, Jet Airways, India Infoline, i-flex, Citigroup Global Markets, Netmagic and Nicholas Piramal.
The company now plans to start constructing phase three and four which will involve construction of 12 lakh square feet area expected to be completed by 2014. For FY11, Nirlon's total income more than doubled to Rs 111 crore with a profit-after-tax of Rs 35 lakh.