Oberoi Realty approves fund raise plan of up to Rs 6,000 crore via private placement of securities

The shares of Oberoi Realty are higher by 7% in the last one month, and on YTD basis the shares are higher by 30%.

The Board of Oberoi Realty has approved the plan to raise up to Rs 6,000 crore via equity shares or other securities, in tranches of private placement, including the option of a qualified institutions placement, the company said on October 10.

The price for the fund raise may be decided factoring in the prevailing market conditions and other factors, said Oberoi Realty.

The realtor has been gearing up for more intense competition in the Mumbai Metropolitan Region, with Raymond rolling out ambitious growth plans. Oberoi Realty considers Thane, a suburb of Mumbai, to be a high-growth market, where large ticket sizes are becoming the norm.

Post-COVID-19, the Indian real estate sector saw several listed real estate developers expand beyond their home turfs. For example, Gurugram-based DLF has entered the Mumbai real estate market, and Mumbai-based Oberoi Realty has announced a land acquisition in Noida. Godrej Properties has also expanded its base in several tier-2 cities.

The shares of Oberoi Realty are higher by 7% in the last one month, and on YTD basis the shares are higher by 30%.

For the June quarter, Oberoi Realty clocked a net sales at Rs 1,405.16 crore, up 54.42% YoY, with a quarterly profit at Rs 584.51 crore, up 81.73% YoY.