Shobha Developers Bangalore is raising Rs 225 crore from Purna Partners Bangalore, a private equity fund. The investment will be made at the Special Purpose Vehicle (SPV) level.
The raised fund will be used towards development of projects in Bangalore and other cities. For this purpose company will identify certain land parcels in Bangalore and other cities for development of residential and commercial projects. It will also undertake mixed development projects in Bangalore and other cities.
Shobha developers will execute the project as the principal contractor and each of projects will be valued separately. The company has also informed that they have received Rs 25 core from the private equity fund. Shobha will be shareholder along with Purna partners and other investors. The number of project will be decided by the investors.
Shobha developers are also looking to raise Rs 1000 crores through Qualified Institutional Placement (QIPs). The company’s board has also called an extra ordinary general meeting to increase share capital of company up to Rs 1500 crores. It is also considering increasing the limit of Foreign Institutional Investors (FII) in equity shares up to 100% of the share capital of company.
The company is also looking to at raising money by diluting stakes in its non-core assets or non-realty business. The fund raised will be used primarily to pay its debts and to fund it realty projects. The realtor is also looking to raise fund by selling 200 acres from its 3000 acres land bank.
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