Tuesday 7 July 2009 - All stories compiled and edited by Bhaswati Das
A number of foreign and domestic institutional investors, including Macquire Bank, Prudential, KKR and Fidelity, have acquired stakes in Housing Development and Infrastructure (HDIL) through the recently completed Rs1,700-crore qualified institutional placement (QIP). HDIL placed 70 million shares with institutional investors at a price of Rs240 per share and also issued 26 million convertible warrants at the same price to the promoters on preferential basis.
However, the 50 odd companies which have rushed to QIPS may not be able to raise equity through this route, on rising concerns over valuations and over-supply. GMR Infrastructure was forced to call off its $500 million QIP after investors developed cold feet on concerns over valuation.
There is a silver lining to this situation. Mumbai- based realty firm Lodha Group is in talks with three private equity players to raise $180-million (around Rs850-crore) for its projects. “We are in active negotiations with private equity funds for three projects and are looking at an average deal size of $60-million for each project, said Abhisheck Lodha, Director, Lodha Group.
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