Omaxe promoters raise Rs 244 cr via OFS; to infuse funds in co

Promoters have brought down their stake in the company from 89% to 75% through OFS mechanism

Realty firm Omaxe today said its promoters have raised Rs 244 crore by selling shares through the OFS route and the funds would be infused into the company to boost growth.

"The promoters have brought down their stake in the company from 89% to 75% through the Offer for Sale (OFS) mechanism and a bonus issuance to comply with SEBI's Minimum Public Shareholding Regulations," Omaxe said in a statement.

"The stake sale has fetched the promoters close to Rs 244 crore, which the promoters shall plough back into the company through redeemable preference shares," it added.

Recently, Omaxe announced issue of 10 bonus shares to public shareholders for every 39 shares held by them in order to meet market regulator SEBI's norm on minimum 25% public shareholding. Before that, promoters had launched four rounds of OFS.

Omaxe has decided to take approval of shareholders through postal ballot for issue of preference shares.

The net worth of the company would be Rs 2,147 crore post the allotment of preference shares, Omaxe President-Corporate Finance Sudhangshu S Biswal said.

Gross Debt as on September 30, 2013 stood at Rs 1,025 crore. "With the capital infusion, the Gross debt equity ratio of the company will be 0.48, while the net debt equity ratio stands at 0.39, which is by far the lowest in the industry".

The company has been continuously paring its debt from Rs 1,983 crore in FY'2009 to the current levels.

"Our strong presence in Tier II & III cities have helped us in recording a healthy growth in sales from Rs 815 cr in FY 2009 to Rs 2100 crore in FY 2013," Biswal said.

Omaxe has presence in 9 states across 30 cities. The company is currently undertaking 42 real estate projects - 14 group housing, 19 townships, 9 commercial projects.