Mumbai-based Oberoi Realty Ltd has received its board approval to raise as much as Rs 2,250 crore ($353.4 million) through issue of debentures and equity shares on a public offer and private placement basis, the company said in a stock market disclosure.
The board of directors at its meeting held on June 2, 2015, passed the resolution to raise up to Rs 1,500 crore ($235.6 million) and Rs 750 crore ($117.8 million) through non-convertible debentures and equity shares or any other securities, respectively. This is subject to the approval of shareholders.
Recently, Morgan Stanley Real Estate, the real estate focused asset management arm of financial services giant Morgan Stanley, sold close to half of its remaining stake in the company for around Rs 202 crore ($31.7 million).
The second-largest real estate developer in the country by market capitalisation, Oberoi Realty posted a net profit of Rs 103 crore for the quarter ended March 31, 2015 compared with Rs 77 crore in the same quarter a year ago. Its total income rose to Rs 338.6 crore in Q4FY15 against Rs 219.4 crore in the same quarter last year.
Last May, it had joined hands with US-based Ritz-Carlton for its mixed-use development project in Mumbai to be developed by Oasis Realty. Oasis Realty is a JV between Sahana Group and Oberoi Realty.
Shares of Oberoi Realty were trading at Rs 292.15 each, down almost 6 per cent on BSE in a weak Mumbai market on Wednesday at 1.03 PM.