New Delhi: Realty firm Omaxe plans to raise Rs 100 crore through private placement of debt securities in order to fund construction activities of its ongoing projects.
The company's board will meet on December 2 to consider a proposal to raise funds through issue of debt securities on private placement.
In a filing to the BSE, Omaxe said that "a meeting of the Board of Directors of the company will be held on December 2, to consider and approve, issuance of secured non convertible redeemable debt securities (including secured non-convertible redeemable debentures) on private placement basis".
When contacted, Omaxe Chief Executive Officer (CEO) Mohit Goel told PTI: "We are looking to raise up to Rs 100 crore through non-convertible debentures. We are taking up this proposal to the Board for approval".
He said the company would utilise the fund on construction activities of existing projects.
Omaxe has a land bank of about 4,400 acres in 30 cities across 9 states. The Delhi-based firm is executing 42 real estate projects that include 18 townships, 14 group housing and 10 commercial.
Omaxe posted 24 percent decline in its consolidated net profit at Rs 13.88 crore for the second quarter ended September 30 against Rs 18.15 crore in the year-ago period.
Income from operations, however, rose by 4 percent to Rs 378.92 crore during July-September from Rs 365.45 crore in the second quarter of 2013?14.
Shares of Omaxe edged lower to Rs 125.50 apiece on the BSE.
