Raymond Realty Ltd plans to raise up to Rs 409 crore through a preferential issue of convertible warrants to promoter group entity J K Investors (Bombay) Ltd.
The company's board has approved the issuance of 66.57 lakh warrants at Rs 614 apiece, including a premium of Rs 604 per warrant. The fundraise is subject to shareholder and other regulatory approvals, according to an exchange filing.
Each warrant will entitle the holder to subscribe to one fully paid-up equity share of Raymond Realty at Rs 614 per share. The warrants can be converted into equity shares, either in full or in tranches, within 18 months from the date of allotment.
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If the warrants are not exercised within the stipulated period, they will lapse and the upfront amount paid for them will be forfeited. J K Investors, which belongs to Raymond Realty's promoter group, will be the sole investor in the preferential issue.
On a fully diluted basis, assuming complete conversion of the warrants, its stake in Raymond Realty is expected to rise to 35.99% from 29.83% currently. The proposed issue would result in the allottee holding 2.65 crore shares after full conversion, compared with 1.99 crore shares before the preferential issue.
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Alongside the fundraise, Raymond Realty's board has approved an increase in the company's authorised share capital to Rs 75 crore from Rs 70 crore. The increase will be effected through the creation of 50 lakh additional equity shares with a face value of Rs 10 each.
The proposed capital raising comes as Raymond Realty looks to strengthen its financial capacity and support its growth plans in the real estate business.
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