Oberoi Realty's operations committee has approved the issuance of non-convertible debentures worth up to INR 1,500 crore through private placement, as per a filing with the Bombay Stock Exchange. To secure this issuance, a first-ranking pari passu charge has been established on unsold flats in the 'Eternia' and 'Enigma' projects in Mulund (West), Mumbai, along with associated receivables and an escrow account. Additionally, the board has greenlit a proposal to raise up to INR 6,000 crore through various securities, showcasing the company's strategy to bolster its financial position and support ongoing developments.
The operations committee of the board of directors at Oberoi Realty has recently authorised the issuance of non-convertible debentures amounting to a maximum of INR 1,500 crore through a private placement. This decision was communicated in a filing with the Bombay Stock Exchange, highlighting the company's strategic approach to raising capital.
To secure this issuance, a first-ranking pari passu charge has been established. This means that the rights, title, and interest of the company in relation to the unsold flats in its 'Eternia' and 'Enigma' projects, which are situated in Mulund (West), Mumbai, will serve as collateral. The collateral also encompasses receivables from both the unsold units and identified sold flats within these projects. Additionally, an escrow account has been created, along with the investments made from this account, which will further support the security of the debenture issuance, as detailed in the regulatory filing.
Earlier this week, the board took significant steps by reviewing and approving a broader proposal aimed at raising funds that could total up to INR 6,000 crore. This initiative involves the issuance of equity shares, eligible securities, and other financial instruments. The funds may be raised in one or more tranches via private placement, which can also include a qualified institutions placement. This multifaceted approach indicates Oberoi Realty's commitment to enhancing its financial capacity while continuing to develop its ongoing projects. The decision reflects the company's proactive stance in the real estate market, ensuring it has the necessary resources to navigate current market conditions and invest in future growth opportunities.
Oberoi Realty's recent decisions reflect its proactive approach to capital management and project financing in a dynamic real estate market. By authorising the issuance of non-convertible debentures and establishing robust collateral, the company is strategically positioning itself to secure necessary funding while mitigating financial risks. Additionally, the approval to raise substantial funds through various securities underscores Oberoi Realty's commitment to sustaining growth and enhancing its portfolio. These initiatives are poised to strengthen the company's financial foundation and support its ongoing and future projects, ensuring continued success in the competitive real estate sector.
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