HDIL opens QIP, raising $250 m

Housing Development and Infrastructure (HDIL), the fourth-largest realtor in the country, opened its qualified institutional placement (QIP) on Monday and was looking to raise $250 million (Rs1,160 crore), two sources familiar with the development said.

JP Morgan is the exclusive banker to the deal, one  person said.
“The books opened at 4pm Monday and would close late night. International investors are picking it up,” he said.

HDIL informed the bourses late evening that the floor price in respect of the placement, based on the pricing formula as prescribed under Regulation 85 of the Sebi Regulations is Rs268.18 per equity share.

At that price, raising $250 million would add 4.33 crore new shares, taking the total float to 41 crore.

 As of June this year, the promoters held 42.26% stake in the company, which would fall by 4.46% to 37.80% after the QIP.
HDIL had earlier passed a special resolution at its annual general meeting on August 27 to raise $650 million.

It needs the money build a rental housing project in Virar, 60 kms from Mumbai; for a slum rehabilitation project in Santacruz, for Phase II land development at Mumbai International Airport and for acquisition of land for Phase III.

HDIL is also looking at buying redevelopment rights for 5-6 land parcels in Sewri, Byculla, Cotton Green and other areas, where none of the big realty players is present.

On January 22, DNA had first reported that HDIL was trying to open its books to raise close to Rs1,200 crore, but could not generate any response from investors. Enam Securities, JP Morgan, Kotak Securities and CLSA had received the mandate to raise the sum required. The flailing markets forced the QIP to be kept on hold.

HDIL had raised $350 million through its first QIP last year, where investors like Fidelity, Blackstone and KKR had put in money.
From the proceeds, it has already paid Rs1,447 crore as debt repayment.