India Real Estate Link » Shareholders

Bombay Dyeing to come up with residential and commercial buildings

Anchal — Sat, 14 Aug 2010 03:41:49 +0000

Photo by nancyarora2020Mr. Nusli Wadia, chairman of Bombay Dyeing & Manufacturing Co., a textile major, expects to clear off its debt in the next few years through realty business. The current debt on the company is Rs. 1775 cr.

At the company’s 130th annual general meeting, Mr. Wadia told the shareholders that debt has always been a big concern and the company hopes to get free from these debts within 2-3 years. The company expects a good response for its real estate business which might help them become a debt-free company.

Last year, the income from Real estate business doubled to Rs. 562 cr. The company now plans to come up with residential and commercial buildings on the 67 acres of land it owns in Mumbai.

Brigade Enterprises; touching sky

Anchal — Sat, 24 Jul 2010 03:39:21 +0000

Brigade Enterprises, a Bangalore-based real estate company is planning to raise an additional fund of Rs. 750 cr. Foreign currency convertible bonds (FCCBs)American depository receipts (ADRs), global depository receipts (GDRs) or placement with qualified institutional investors will be the key instruments for raising the fund.

After the meeting yesterday, the company said to the shareholders that the funds will be used for acquisition of land, infrastructure cost of current and upcoming projects, clearance of debts, investment opportunities, augmentation of working capital and other general purposes.

Brigade originally focuses on developing residential units in South India, however, is now seeking shareholder approval to list its stock on Luxembourg, London, New York and Singapore Stock Exchanges.

On Thursday, the shares of Brigade closed at 1.07% higher to Rs. 137.35.

Hiranandani group to resume Hirco

rajani — Fri, 02 Jan 2009 06:36:48 +0000

Leading shareholders of Hirco, the AIM-listed real estate fund of the Hiranandani group, are likely to support the group’s move to restructure Hirco, by merging two real estate subsidiaries with it.
According to a person close to the Hiranandani group, “The proposal to restructure has originated from shareholders. About 90% of them are supporting the proposal,” he said, declining to be quoted. “A board meeting is scheduled sometime later this month to take the final call on the plan,” he added.
The move has however run up against stiff opposition from another section of shareholders who are reportedly planning to jointly oppose such a move as they feel, it would give the Hiranandani group, control over Hirco.
Extraordinary general meeting on January 16, in Mumbai, for shareholders to vote on the restructuring proposal. Hirco will begin roadshows for investors early next week.
Niranjan Hiranandani, chairman of the Hiranandani group, didn’t comment as it is the silent period – the period ahead of the company’s results when senior officials don’t make forward looking statements.
Reports in the British media on Wednesday had suggested that certain shareholders were opposing the restructuring plan, which they say, would dilute shareholding interests and effectively cede control to the Hiranandanis.
According to the reports, a section of investors led by Laxey Partners, an activist shareholder with over 10% shareholding in Hirco, have termed the restructuring plan as “shocking and ill-conceived.”
In a letter, Laxey wrote to other shareholders urging them to join it in voting against the plan, which involves injecting a loss-making development vehicle ownded by the Hiranandani family, into Hirco, and handing the family an equity stake of up to 50.6% in Hirco.
As part of the proposal, shareholders will lose their preferential claim on £350.8 million of shares that pay an annual dividend of 12%.
On December 18, the Hirco board had proposed the merger, through which, Hirco would acquire two special purpose vehicles owned by the Hiranandanis. These two companies are carrying out township developments at Panvel, near Mumbai and in Chennai.
There are currently many foreign funds that own large stakes in Hirco, including UK’s Standard Life (13.11%), HSBC Holdings (10.13%), Laxey Partners (10.05%), Halbis Capital (7.84%), Fortress Investment (4.57%) and Lazard AM (4.57%).
The Hiranandani group which is unlisted in India, holds less than 20% of the invested entity. The merger proposal, once implemented would take the Hiranandani group holding to over 50%.
Hirco, which listed on the AIM in 2006, had raised more than £380 million for investing in residential properties in India.

Unitech to raise up to Rs 5000 crore via issue of securities

rajani — Tue, 23 Dec 2008 11:03:17 +0000

Real estate company Unitech Ltd said on Monday that it plans to raise up to Rs 5,000 crore through issue of securities. The company said this is an “enabling resolution”, and follows the expiry of a similar resolution earlier. But it did not give out details of fund raising.
Unitech Ltd shares ended nearly 3.4% higher on BSE, at Rs 45.75 on Monday.
The company, in a notice to BSE, said besides the raising of additional long-term funds, the Board of Directors had also given the nod to increase authorized share capital of the company from Rs 500 crore to Rs 1,000 crore. Unitech has convened an Extraordinary General Meeting (EGM) on January 19, 2009, to seek the shareholders’ approval on the proposals.
“It is an enabling resolution that we would like to keep at any point so whenever we need, we can raise funds. At this point, there are no specific plans and the markets too are not favorable, but things could improve over the next one year,” a senior company official said.
It may be recalled that Unitech Ltd is hoping to mobilize up to Rs 4,000 crore through the sale of some assets and equity in order to repay part of its Rs 8,400 crore debt by March, 2009.
This would be achieved through transfer of about Rs 1,200 crore loans to Unitech Wireless; raising about Rs 1,200-1,500 crore through a sale of hotels and office properties; and Rs 1,000 crore from private equity funding into residential projects.