Oberoi Const plans to raise Rs 1k cr from the market
Sachin Dave MUMBAI CITY-BASED real estate firm Oberoi Constructions is learnt to have decided to raise between Rs 750 crore and Rs 1,000 crore through a public issue by the end of the calendar year to finance its expansion. An Oberoi Constructions official confirmed the company’s plan to raise funds from the public, without divulging the size of the issue. “We have plans to go public, but we are yet to decide on the exact amount to be raised. But all I can say is that it will be of substantial size,” he said. A banker close to the company’s thinking said the issue would raise at least Rs 750 crore. It is learnt that the company would divest around 10-12% of the post-issue equity capital through the IPO. The Oberoi family, the promoters, hold around 90% in the real estate firm while Morgan Stanley holds the remaining 10%. In 2007, Morgan Stanley had bought its stake for $152 million, valuing the company at $1.5 billion. Six other real estate firms namely Emaar MGF, Sahara Prime City, Godrej Properties, Lodha Developers, Nitesh Estates and Sriram Properties are at different stages of raising over $2.5 billion through public issues, indicating a gradual revival of the industry and easy availability of funds. Oberoi Constructions is one of the big real estate firms in Mumbai and its promoter, Vikas Oberoi, features in the list of Indian billionaires. An Oberoi Construction official said the company’s net profit was expected to go up to Rs 650 crore this financial year against Rs 250 crore last year. He, however, declined to divulge the topline of the company. Oberoi Constructions is a debt-free company. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
