In August 2024, Oberoi Realty received approval from the National Company Law Tribunal (NCLT) to acquire Nirmal Lifestyle through the corporate insolvency resolution process. Nirmal Lifestyle holds rights to over 20,000 square meters of land in Mulund West, Mumbai, located adjacent to Oberoi's Eternia project, offering valuable expansion potential. Oberoi Realty will settle Nirmal's INR 273 crore debt, purchasing the company's equity for INR 1 lakh, making Nirmal Lifestyle a fully-owned subsidiary. Additionally, Oberoi plans to raise INR 6,000 crore to fund future projects through phased issuance of shares and other instruments. With these moves, Oberoi Realty is strengthening its foothold in Mumbai's competitive real estate market, enhancing its growth outlook, especially in suburban and high-growth regions.
In August 2024, the Mumbai bench of the National Company Law Tribunal approved Oberoi Realty's resolution plan for Nirmal Lifestyle as part of the corporate insolvency resolution process (CIRP). Nirmal Lifestyle owns development rights to around 20,262.24 square meters of land in Mulund West, Mumbai. This plot is next to Oberoi Realty's existing project, Eternia, which presents the company with valuable new development opportunities.
Under the resolution plan, Oberoi Realty will pay INR 273 crore to settle all debts owed to various creditors. Once the settlement is finalized, Oberoi Realty will fully acquire Nirmal Lifestyle, purchasing 100% of its equity for just INR 1 lakh. With this acquisition, Nirmal Lifestyle becomes a wholly-owned subsidiary of Oberoi Realty, positioning the company for further real estate projects in the Mulund area.
Oberoi Realty plans to raise up to INR 6,000 crore to support its future growth. The company's board of directors has approved this funding initiative, which will involve issuing equity shares and other financial instruments. This amount will be collected in multiple phases, allowing the company to adapt to changing market conditions. The share prices and terms will reflect current market trends, helping Oberoi Realty stay competitive in Mumbai's rapidly growing real estate sector, where other firms like Raymond are also expanding.
By acquiring Nirmal Lifestyle and securing this land, Oberoi Realty is positioning itself for growth. The company's recent decision to raise funds aims to strengthen its presence in high-potential areas within Mumbai, such as the city's suburbs, including Thane. After the COVID-19 pandemic, many real estate companies have been expanding into new regions, and Oberoi Realty is following this trend.
Though based in Mumbai, Oberoi Realty is expanding its footprint to other regions, including Noida. The company's strong financial performance has boosted investor confidence. Oberoi Realty's shares have increased by 7% in the past month and are up 30% for the year, demonstrating investor optimism about the company's growth plans.
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