HDIL raises USD 250 mn via QIP

Reality firm Housing Development and Infrastructure (HDIL) today announced that it has raised USD 250 million by sale of shares via qualified institutional placement (QIP) route.

The overall demand for QIP exceeded USD 350 million and investment allocation was backed by long holding institutional investors from US, Europe & Asia.

The major portion of the funds raised will be utilized for the development of Phase II & III of the Mumbai international slum airport rehabilitation project and the balance will be allocated for working capital. The net debt to equity ratio after issuance of QIP is less than 0.4.

Talking about the success of the QIP, Sarang Wadhawan, managing director (MD), HDIL, said “With the infusion of USD 250 million equity & the issuance of promoter`s warrants HDIL`s balance sheet is poised to undertake long term growth oriented projects. We would like to thank our investors for the tremendous confidence shown in our growth initiative & our sole investment banker JP Morgan for their excellent support.“

The floor price in respect of the aforesaid placement was Rs 268.18 a share. The QIP issue opened on Sep. 13, 2010 and closed on Sep. 15, 2010.

HDIL had underperformed the market over the past one month till Sep. 15, 2010, falling 5.02% compared with the Sensex`s 7.35% rise. It underperformed the market in past one quarter, gaining 9.68% as against 12% rise in the Sensex.

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