Tag: Real Estate

Mahindra Lifespace gets Sebi nod for Rs 300-cr rights issue

Mahindra Lifespace gets Sebi nod for Rs 300-cr rights issue

08/03/2017 14:38

Realty firm Mahindra Lifespace Developers has received capital markets regulator Sebi’s approval to raise up to Rs 300 crore through rights issue.

In a rights issue, shares are issued to existing shareholders as per their holding at a pre-determined price and ratio.

The company had filed draft papers with Sebi in January to raise funds through rights issue and the regulator issued its ‘observation’ on March 2, which is necessary for any firm to launch public offer, as per latest update with Sebi.

Going by the draft papers, Mahindra group’s realty firm would issue “equity share for an amount up to Rs 300 crore on a rights basis to the eligible equity shareholders”.

Proceeds from the issue will be primarily used for redemption of non-convertible debentures.

ICICI Securities Ltd is the sole book running lead manager for the offer.

Besides, three firms — Vardhaman Special Steels, Intellect Design Arena and ZenoTech Laboratories — have also sought approval of Securities and Exchange Board of India (Sebi) to raise funds through rights issue.

According to market experts, market stability could be a reason why companies are opting for equity issuance to existing shareholders.

Last year, companies mopped up a total of Rs 1,230 crore via rights issue mode.

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ABB India net up 13.5% at Rs 147 cr; to pay 200% div

ABB India net up 13.5% at Rs 147 cr; to pay 200% div

09/02/2017 16:17

ABB India today posted a 13.5 per cent jump in its standalone net profit at Rs 146.79 crore in the quarter ended December 31, 2016.

The company had posted a net profit of Rs 129.4 crore for the corresponding quarter a year ago, ABB India said in a BSE filing today.

According to the statement, total income increased from Rs 2,435.89 crore for the quarter under review to Rs 2,501.07 crore a year ago.

According to the audited standalone results for the year ended December 31, 2016, the company has posted a net profit of Rs 376.25 crore for the year ended December 31, 2016 as compared to Rs 299.88 crore for the previous year.

Total income (in the year 2016) has increased from Rs 8,153.31 crore for the year ended December 31, 2015 to Rs 8713.64 crore for the year ended December 31, 2016.

The company said that new orders in UHVDC (ultra high voltage direct current) transmission technology projects would be key to realising the government’s renewable energy vision and 24×7 reliable power for all.

Transportation investments led by railways, metro projects and renewables by wind provided the levers for a milestone growth. A sectoral focus in emerging areas like food and beverage and datacentres continue to show good progress, it said.

The full year order book surged to Rs 12,466 crore while orders received for the quarter ending December 2016 was at a high of Rs 5,628 crore, it said, adding that an order backlog of Rs 11,821 crore, as on December 31, 2016, provides solid visibility for future revenue.

The company’s board at its meeting held today recommended a dividend of Rs 4 per share (200 per cent), subject to the approval of shareholders at the forthcoming Annual General Meeting.

In a seperate filing, ABB India informed BSE that the Board of Directors of the Company at its meeting held on today have recommended a dividend of Rs 4 per equity share of face value of Rs 2 each for the year ended on December 31, 2016.

The company has also informed the BSE that its Register of Members & Share Transfer Books will remain closed from May 3 to 9, 2017 for Payment of Dividend and 67th Annual General Meeting (AGM) on May 9, 2017.

Supreme Infra bags projects worth Rs 397.68 cr from CIDCO

Supreme Infra bags projects worth Rs 397.68 cr from CIDCO

20/06/2016 15:15

Real estate builders and construction company, Supreme Infrastructure India said that it has bagged two projects worth Rs 397.68 crores from City and Industrial Development Corporation of Maharashtra (CIDCO).

“The Company has been declared L1 in the two EPC projects of CIDCO worth Rs. 397.68 Crores,” it said in a filing to the Bombay Stock Exchange.

According to the filing, the project worth Rs 203.53 crore is for work of land development of Navi Mumbai International Airport (Package-I).

The other contract worth Rs 194.15 crore is for the work of land development of Navi Mumbai International Airport (Package II).

Meanwhile, shares of the company were trading at Rs 118 apiece, up 2.79 per cent from the previous close at 15:16 hours on BSE.

NTPC’s Rs 5,030 cr stake sale starts under new Sebi norms

NTPC’s Rs 5,030 cr stake sale starts under new Sebi norms

23/02/2016 13:03

Government’s Rs 5,030 crore stake sale in India’s largest power producer NTPC Ltd commenced on the bourses today, with institutional investors putting in bids for over two crore shares in the initial hour of trade.

The government is selling 41.22 crore shares, or 5 per cent, in NTPC at a floor or minimum price of Rs 122 apiece. If fully subscribed, the stake sale would fetch Rs 5030 crore to the exchequer.

In the secondary market, the scrip was trading at Rs 124.80, down 1.62 per cent over its previous close.

The share sale is the first under Sebi’s revised offer for sale (OFS) rules that allow the bidding for shares spread over two days.

The floor price of Rs 122 apiece was at a 3.82 per cent discount to yesterday’s closing price of Rs 126.85 on the BSE.

While the issue opened for institutional bidders today, the retails investors, for whom 20 per cent shares have been reserved, will get to bid on Wednesday.

Of the over 32.98 crore shares on offer for institutional investors, bids for over 2.10 crore shares have come in the initial hour of trade.

NTPC is the first company to hit the markets under the revised OFS guidelines of markets regulator Sebi.

The bidding would continue till 1530 hours on both the days.

A five per cent additional discount would be offered to retail investors, which are those who bid for shares worth not more than Rs 2 lakh.

SBICAP Securities, ICICI Securities, Edelweiss Securities and Deutsche Equities are the merchant bankers for the share sale.

The Cabinet in May had approved the 5 per cent stake sale in NTPC. The government holds 74.96 per cent in the firm. It had last sold stake in NTPC in February 2013.

AIF investments rise 25 pct to Rs 14,000 cr in Oct-Dec qtr

11/02/2016 01:39

Alternative Investment Funds (AIFs) have made investments to the tune of more than Rs 14,000 crore during October-December quarter, a surge of 25 per cent from the preceding three months, said the media report.

AIFs are the newly created class of pooled-in investment vehicles for real estate, private equity and hedge funds.

They made investments to the tune of Rs 14,031 crore in three months ended December 31, 2015, higher than Rs 11,255 crore infused in July-September quarter, according to latest data available with Sebi.

The Category I AIFs poured in Rs 2,656 crore, Category II Rs 7,602 crore and Category III Rs 3,771 crore.

The regulator had notified in May 2012, the guidelines for this class of market intermediaries. Since then, they have been making investment.

At the end of December 2012, they pumped in just Rs 20 lakh which has now jumped to Rs 14,031 crore.

More than 150 AIFs have been registered with Securities and Exchange Board of India (Sebi) since 2012.

AIFs are funds established or incorporated in India for the purpose of pooling in capital from Indian and foreign investors for investing as per a pre-decided policy. Under Sebi guidelines, AIFs can operate broadly in three categories, said the PTI report.

The Category-I AIFs are those funds that get incentives from the government, Sebi or other regulators and include social venture funds, infrastructure funds, venture capital funds and SME funds.

The Category-III AIFs are those trading with a view to making short-term returns and includes hedge funds, among others. The Category-II AIFs can invest anywhere in any combination but are prohibited from raising debt, except for meeting their day-to-day operational requirements.

These AIFs include private equity funds, debt funds or fund of funds, as also all others falling outside the ambit of above two other categories.

Pitching for drastic changes in norms governing venture capital and private equity funds, a Sebi panel last month suggested favourable tax regime and measures to attract long-term funds from domestic and overseas investors.

Godrej Properties Q3 net up 10.1 pct at Rs 51.99 cr

02/02/2016 13:51

Leading real estate firm Godrej Properties Ltd (GPL) on Tuesday reported an increase of 10.1 per cent in its consolidated net profit after taxes (PAT) at Rs 51.99 crore for the October-December quarter of 2015, despite decline in its sales.

“The consolidated net profit of the company stood at Rs 47.24 crore during the same period a year ago,” Godrej Properties Ltd said in a filing to the Bombay Stock Exchange on February 02, 2016.

However, the consolidated total income of the Mumbai-based real estate developer fell by 16.4 per cent at Rs 450.30 crore during Q3 FY16, as compared to Rs 538.64 crore during the same quarter last fiscal.

Sales of the company during the October-December quarter shranked 17.5 per cent to Rs 388.55 crore, as compared to Rs 470.96 crore in Q3 FY 2015.

GPL’s net profit went up mainly on account of increase in other income and decrease in total expenditure. It’s total expenditure declined to Rs 345.95 crore from Rs 457.68 crore, while other income rose to Rs 28.01 crore from Rs 19.34 crore during the period under review.

Speaking on the performance, Godrej Properties, MD & CEO, Pirojsha Godrej said, “I’m happy to note that we have surpassed Rs.1200 crore in sales for the third consecutive quarter of this financial year. We are especially excited by thecustomer response to the launch of ‘The Trees’ in Vikhroli which was the most successful launch in the history of GPL in terms of value sold in the launch quarter.”

The company said that Q3 witnessed total booking value of Rs 1,214 crore and total booking volume of 1,028,832 sq ft as compared to total booking value of Rs 548 crore and total booking volume of 701,729 sq ft in third quarter of last fiscal.

Last month, the company tied up with Vihang group for development of a housing project on a 15-acre land in Thane, Mumbai. It also forayed into the Noida property market by partnering local developer Lotus Greens.

It has entered into a development management agreement to develop a group housing project in Noida. Spread over 36 acre, the project will offer around four million sq ft of saleable area. This will be it’s first project in Noida and sixth within the NCR.

Despite earnings, shares of the company were trading at Rs 302.20 apiece, down 0.31 per cent, from previous close on BSE at 13:49 hours.

Real estate sector to see muted demand in FY17: Ind-Ra

02/02/2016 12:00

India Ratings and Research (Ind-Ra), a country’s leading rating firm, on Monday revised its outlook on the real estate sector to negative for FY17 from negative to stable, based on the expectation that property demand will not revive during the year.

“This will result in a continued fall in unit sales and revenue, and thus lower cash flows and worse credit metrics in FY17. Hence, Ind-Ra has also revised the rating outlook on sector companies to negative from stable,” the rating firm said in a statement.

A revival of property demand would depend on a meaningful reduction in prices or a significant improvement in economic growth resulting in positive customer sentiments. The revival is unlikely until FYE17, as property prices will remain high and on the Ind-Ra’s estimates of GDP growth improving to 7.9 per cent in FY17 (FY16: 7.4%).

Companies have resorted to refinancing of debt through higher-cost funding from non-banking finance companies or private investors. This extends maturity and reduces the pressure on them to reduce prices to liquidate inventory and repay debt. However, this also increases the likelihood of stress when such instruments fall due.

Investor interest in the sector remains high and has received support from the relaxation of entry and exit conditions for foreign investors into the sector. While these measures will result in higher investment flows, it will be negative for the sector as most of the investments are in debt-like instruments and increases the likelihood of stress.

Ind-Ra expects demand for office space to be stable during FY17 driven by demand from IT/ITes and e-commerce segments. Demand for retail space has been hit by the expansion of e-tailers; however, it has been supported by the entry of foreign single brand retailers.

Indiabulls Real Estate Q3 net up 2.1 % at 80.44 cr

22/01/2016 12:26

Indiabulls Real Estate has reported 2.1 per cent growth in its consolidated net profit at Rs 80.44 crore for the third quarter ended December.

The company had registered net profit of Rs 78.75 crore in the same quarter a year ago, the company said in a filing to the Bombay Stock Exchange.

Total income for the quarter, however, declined 6.5 per cent to 681.49 crore compared to Rs 728.79 crore in the corresponding quarter last year.

During the quarter, Indiabulls Real Estate trimmed its net debt by Rs 225 crore and is planning to further reduce it by Rs 130 crore in last quarter of current financial year, to achieve the target net debt of Rs 4,800 crore as on March end.

The company is aiming to reduce its net debt-equity ratio to 0.42 by end of 2016-2017 (April-March). As on December end, the company’s net debt stood at Rs 4,928 crore.

By March 2017, the company is looking to reduce net debt by Rs 1,500 crore, taking it down to Rs 3,300 crore; representing 12 per cent reduction by March 2016 and and 40 per cent by March 2017, the company said in its earnings statement.

Meanwhile, shares of the company were trading at Rs 54.25 apiece, up 5.65 per cent from the previous close at 12:25 hours on BSE.