Delhi-based real estate developer Omaxe has decided to postpone its plans to raise Rs 1,500 crore through private placement until more favorable market conditions arise. This strategic pause comes in the wake of Unitech’s decision to suspend its $1.5 billion qualified institutional placement (QIP) and Emaar MGF’s choice to withdraw its initial public offer (IPO) midway through the process. According to industry insiders, these delays in fundraising initiatives are probably not going to have any immediate repercussions on earnings.
Mr. Vipin Aggarwal, Executive Director at Omaxe, commented, "We are waiting for the market to stabilize before we go in for private placement. We may not get the right valuation in the present situation." Initially, Omaxe aimed to secure Rs 1,500 crore by issuing new equity shares to institutional investors, with the proceeds earmarked for land acquisitions. Regarding this, Mr. Aggarwal mentioned, "The stake sold through this process could have been close to 15%." Ultimately, this transaction could have positioned Omaxe at a valuation of approximately Rs 10,000 crore, closely aligned with the company’s market capitalization recorded in mid-December.
Historically, Omaxe's stock price peaked at Rs 613 on December 13, 2007, on the Bombay Stock Exchange. However, it has since slipped, losing nearly two-thirds of its market value during that timeframe. As of Wednesday, Omaxe's stock closed at Rs 221.60 on the BSE, representing a 5% drop compared to the previous day.
The promoters, Rohtas Goel and his family, currently command an 89.3% stake in the company. Notably, last December, they pledged 15% of their shares to Indiabulls for Rs 300 crore. Omaxe is actively engaged in a variety of real estate development projects, including group housing, integrated townships, shopping malls, multi-product SEZs, and hotels. Recently, the company secured a bid to develop a 393-acre township at Naya Raipur, Chhattisgarh, at an investment amount of Rs 1,800 crore.