One of India's leading real estate companies, Omaxe, announced that its promoters have successfully secured Rs 250 crore through an Offer for Sale (OFS). The organization plans to utilize these funds to propel further growth initiatives.
Through the OFS and a bonus share issuance, the promoters have strategically reduced their stake in the company. It has come down from 89% to 75% to comply with the Securities and Exchange Board of India's (SEBI) Minimum Public Shareholding Regulations.
To meet SEBI's mandate of a minimum 25% public shareholding, Omaxe recently declared a bonus share issuance. Public shareholders will receive 10 bonus shares for every 39 shares they currently hold.
Furthermore, Omaxe is seeking shareholder approval via postal ballot for the issuance of preference shares.
Following the preference share allotment, the company's net worth is projected to reach Rs 2,250 crore.
The company's gross debt for the current fiscal year stands at Rs 1,072 crore. The realtor's gross debt-equity ratio will improve to 0.55, representing a financial stability. The net debt-equity ratio will be 0.42 after infusion of fresh capital, which is the considered to be highly competitive within the real-estate community.
Omaxe has demonstrated a consistent effort in reducing its debt, from Rs 1,989 crore in FY2009 to the current levels.
The real estate giant operates across 30 cities in 9 states and currently has 42 ongoing projects. These projects encompass a diverse portfolio, including 14 group housing projects, 19 townships, and 9 commercial ventures.