DB Realty Ltd. plans to raise Rs 1,500 crore through a qualified institutional placement.
The company will raise Rs 1,000 crore with a greenshoe option of Rs 500 crore, according to the term sheet seen by NDTV Profit. The indicative price is at Rs 258 per share, representing an 8.5% discount from the Thursday's closing price of DB Realty's stock.
There will equity dillution will be around 10.4% post issue at the indicative issue price, as per the term sheet. DAM Capital Advisors, JM Financial, and PL Capital Markets are the book runners for the fund raise.
Mumbai-based real estate developer plans to use the proceeds to repay debt and also kickstart certain projects, NDTV Profit had reported earlier in the week.
On Feb. 9, the company had announced a proposal for corporate restructuring, including demerger of the hospitality business, to unlock growth and value creation for all stakeholders.
On completion, equity shares of the hospitality business are proposed to be listed on the BSE and the NSE. Shareholders of the company (in proportion to their shareholding) will hold a substantial stake in the resulting company, with the balance being held by the company, it said.
Shares of DB Realty closed 3.05% higher on Thursday, compared to a 0.09% advance in the benchmark Nifty 50.
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