Peninsula Land to raise private equity
Peninsula Land Ltd (PLL), the realty company from the Ashok Piramal Group, is planning to raise nearly between Rs 400 to Rs 450 crore through a private placement of equity shares to institutional investors.business Updated: Oct 21, 2007 21:37 IST
Peninsula Land Ltd (PLL), the realty company from the Ashok Piramal Group, is planning to raise nearly between Rs 400 to Rs 450 crore through a private placement of equity shares to institutional investors.
The board is scheduled to meet shortly to take a final decision.
According to sources in the group that also runs companies like Pyramyd Retail, the company is planning to raise the funds to expand the realty business and also to participate in the realty funds to be launched by the company in the next couple of months. The current market capitalization of the company is Rs 3,000 crore. After the placement, the promoters’ stakes will come down to 51 per cent from the current level of 62.3 per cent, the sources said.
When Contacted, Urvi Piramal, executive chairman of PLL, said that the company was planning to raise funds to aid various expansion plans. Without divulging the details, she added that the company was looking at various methods of funding.
“The company has over 36 million square feet under development and we are looking at growing at a much faster face,” she added.
Sources said that the after the private placement, the company would launch a domestic realty fund of around Rs 300 crore and an overseas reality fund of around $250-300 million. In these funds, PLL will contribute around 25 per cent of the funds and the balance of 75 per cent will be raised from institutional investors. The funds will be invested in the projects of PLL.
The company had recently purchased 31 acres from Tata group firm Rallis India's at Patancheru near Hyderabad for Rs 90 crore. The acquisition, made through PLL subsidiary RR Mega Property Developers, marks the Mumbai-based developer's entry into the southern market.
The company is focusing on southern and western India.