Thane-based real estate developer Raymond Realty Ltd on Friday said it has approved raising up to ₹409 crore through a preferential issue of 66,57,373 convertible warrants to J K Investors Ltd, an entity belonging to the company's promoter group. The warrants will be issued for cash at ₹614 per warrant, including a premium of ₹604 per warrant.
Each warrant will entitle the allottee to subscribe to one fully paid-up equity share of face value ₹10. The proposed issue is subject to approval from the company's shareholders and other applicable statutory and regulatory approvals. The warrants can be converted into equity shares, in one or more tranches, within a maximum period of 18 months from the date of allotment.
Any warrants not converted within the 18-month period will lapse, and the upfront consideration paid for such warrants will be forfeited. Its shareholding will rise from 1.99 crore shares to 2.65 crore shares. The board has also approved increasing Raymond Realty's authorised share capital from ₹70 crore to ₹75 crore.
This will involve the creation of an additional 50 lakh equity shares of ₹10 each, ranking pari passu with the existing equity shares. Last month, Raymond Realty said it is maintaining a strong growth outlook, with management expecting pre-sales and revenue to grow at around 20% annually over the long term.
The company is also seeing healthy demand across its projects, with Sahni saying there has been no significant dent in demand so far. While some developers have introduced attractive payment schemes, he does not see a broader industry trend of established players offering steep concessions, with such schemes largely remaining project-specific.
In the April-June quarter , Raymond Realty reported pre-sales of ₹700 crore, revenue of ₹526.7 crore, and margins improved to 11.6%.