Orbit to sell project stake to IL&FS, plans Rs1,000 crore QIP

Orbit Corporation, which is into redevelopment projects in Mumbai, is close to signing a Rs300-crore deal with IL&FS Private Equity Fund for one of its Nepean Sea Road projects, sources close to the development said.

Pujit Aggarwal, managing director, Orbit Corp, refused to comment on the deal.

Orbit had received Rs165 crore from IL&FS by selling 21.6% in its Mandhwa project in January.

“We are looking at Matunga, Sion, Khetwadi, Opera House, Malabar Hill, Cooperage, Cuff Parade and Colaba for newer acquisitions,” Aggarwal said.

Meanwhile, the Orbit board is to meet on June 18 to approve raising Rs1,000 crore through a QIP issue, of which Rs500 crore will be raised in the first tranche. However, sources said, “They will go ahead with the QIP only after two months and at a valuation of Rs300 per share or more,” said sources.

The Orbit share closed at Rs250.75 on Thursday.

The board will also consider doubling borrowing limit to Rs2,000 crore and raising another Rs1,000 crore via guarantees.

In the next two quarters Orbit plans to launch two projects at Nepean Sea Road and one each at Gamdevi and Kemps Corner. It is looking at a margin of 35-40% from these. “These projects will have a space generation of 1.2-1.3 m sft. We are expecting sales of about Rs 500-600 crore from them,” Aggarwal said.