Ganesh Housing to offload 21 per cent to FIIs

Ganesh Housing Corporation Ltd, an Ahmedabad-based real estate company, will dilute a substantial chunk of its equity to foreign institutional investors (FIIs) and Indian mutual fund companies.

Shekhar Patel, managing director of Ganesh Housing, said,"We will raise our present FII investment stake by increasing our FII investment limit from 24 percent to 49 percent."

Currently, only 14 percent stake is held by FIIs, which is expected to increase to around 35 percent post dilution. The company will divest 21 percent equity to FII, if everything goes as per plan, he added.

Meanwhile, the company is setting up an information technology special economic zone, Million Minds, at an investment of about Rs 600 crore. Patel said they would raise Rs 250 crore for the project and the remaining would be met through space booking.

It has already acquired 125 acres of land for the purpose and the work on it would start in three weeks.

The company will issue 70 lakh shares either through the preferential route to FIIs or to qualified institutional buyers (QIBs). It is in talks with 15 FIIs at present.

Patel declined to divulge the names of the FIIs. Established in 1961, Ganesh Housing went public in 1991. The company's market capital as on November 25, 2006, stood at Rs 432 crore.