Mumbai-based real estate developer Oberoi Realty on Tuesday announced plans to hit the capital market with a public issue. The issue will repoen on Wednesday with a price band of Rs 253 to Rs 260.
The company will dilute around 12 per cent of its equity and raise Rs 1,000 crore.
Morgan Stanley holds 11 per cent in the company while Vikas Oberoi holds the rest. Post-issue, Morgan Stanley’s stake will come down to 10 per cent.
The company also plans to foray into other cities apart from Mumbai and Pune where it is present, said Vikas Oberoi, managing director, Oberoi Realty. The company is evaluating proposals from the NCR, Bangalore, Chennai and Hyderabad.
The company said it does not have a debt on its balance sheet and the funds raised through the public issue will be utilised for expansion purposes.
The company’s announcement comes at a time when several other real estate firms are considering to hit the primary market. Some major realty players such as Lodha Developers, Sahara Prime and Emaar MGF, too, may roll out their public issues depending on how the market reacts to Oberoi’s issue.