Realty firm Sobha has raised Rs 25 crore through private placement of non-convertible debentures to replace costlier debt.
In a filing to the BSE, Bengaluru-based developer said the company yesterday allotted secured redeemable non-convertible debentures aggregating to Rs 25 crore on private placement basis.
In May last year, the company's board of directors had approved the issue of non-convertible debentures up to Rs 1,000 crore in multiple tranches.
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"The company had earlier issued and allotted secured redeemable listed non-convertible debentures aggregating to Rs 200 crore on private placement basis.
"As on date, the total outstanding debentures including the present allotment is Rs 225 crore," Sobha said.
When contacted, Sobha Vice Chairman and Managing Director JC Sharma said the fund would be utilised to replace costlier debt.
The company's debt stood at around Rs 2,100 crore at the end of the third quarter of this fiscal.
Last month, Sobha reported 47 per cent decline in consolidated net profit at Rs 32.1 crore for the quarter ended December due to lower sales. It had posted a profit of Rs 60.1 crore in the year-ago period.
Income from operation fell by 42 per cent to Rs 399 crore during the third quarter of this fiscal from Rs 684.4 crore in the corresponding period of the previous fiscal.
