Ackruti City is looking to raise up to Rs 1,000 crore via a qualified institutional placement (QIP). CNBC-TV18's Priyanka Ghosh reports.
Here is a verbatim transcript of Priyanka Ghosh's comments on CNBC-TV18. Also watch the accompanying video.
According to sources, this money will be used towards the working capital needs of the project launches that Ackruti has lined up and not for debt retirement. The debt is about Rs 624 crore, which is not a very big amount. Ackruti is looking to raise Rs 1,000 crore via the QIP issue enabling provision of course Rs 1,500 crore. Sources tell us that they are in the process of appointing two merchant bankers to the issue and this will be finalised in the next two week. They plan to open the issue in may be in the second week of August. Ackruti's promoters will be looking at diluting as much as 20% stake. Currently, they hold about 90% stake in the company.
AckrutiCity has plans to launch as many as 22 projects in this financial year and the company has said that this is what they essentially need the proceeds for.
