GHC to dilute 20% equity

The Ahmedabad-based Ganesh Housing Corporation has shortlisted HSBC Bank as a probable qualified institutional buyer (QIB) when it will dilute its stake by 20 per cent next month.

Earlier, in May, the company diluted 10 per cent of its equity when it raised Rs 17 lakh from HSBC and Monsoon India.

Vijay Lalaji, Vice President, Ganesh Housing said, "HSBC will be one of our main qualified institutional bidder (QIBs) when we will raise Rs 250 crore next month. This time 20 per cent more equity will be diluted. The number of QIBs is also expected to be over two. However, we will finally zero in on all the QIBs in the coming month once we get the approval of our shareholders."

The Rs 35 crore worth company is raising the money for its upcoming information technology special economic zone, Million Minds, project behind Nirma University.

Work on the SEZ is likely to begin in February next year.

Spread over an area of 125 acres, the project will cost around Rs 671 crore. The company has also signed an MoU with the government recently.

Presently, the stake of FIIs and NRIs is 15 per cent, general public is 25 per cent and that of promoters is 60 per cent, of which 20 per cent will be diluted next month.

The company, which went public in 1991, registered a profit of Rs 15 crore during fiscal 2005-06.