Oberoi Realty Board Approves Plan To Raise Up To Rs 6,000 Crore

The board of directors of Oberoi Realty Ltd. has approved the proposal to raise up to Rs 6,000 crore in one or more tranches, an exchange filing said on Thursday.

The company plans to raise the amount by way of "issuance of equity shares, eligible securities, other securities or instruments or any combination of securities" by way of private placement including a qualified institutional placement, it added.

The funds could also be raised through "any other permissible mode or combination of modes", Oberoi Realty further noted. The purpose for the fundraise was not mentioned in the exchange filing.

The development comes around two months after Oberoi Realty's resolution plan for the bankrupt Nirmal Lifestyle Realty was approved by the National Company Law Tribunal.

As part of the resolution plan, Oberoi Realty was to pay Rs 230 crore to the creditors of Nirmal Lifestyle. Subsequent to the completion of the resolution terms, Oberoi Realty was to acquire 100% stake in Nirmal Lifestyle, making it a wholly-owned subsidiary of the company.

Notably, Oberoi Realty is counted amongst the top real estate developers in India's metropolitan cities. In the quarter ended June 2024, it had reported an 82% year-on-year jump in net profit to Rs 585 crore. The revenue in the same period increased by 54% to Rs 1,405 crore.

Shares of Oberoi Realty settled 2.43% higher at Rs 1,879.25 apiece on the NSE on Thursday, compared to a 0.07% rise in the benchmark Nifty 50. The stock has risen by 30.2% year-to-date, and by 63% over the past 12 months.

Eight out of 24 analysts tracking the stock have a "buy" rating, 11 suggest a "hold", and five recommend a "sell", as per Bloomberg data. The average of 12-month analysts' price targets implies a potential downside of 5%.