Real estate major Sobha Developers is in talks with private equity players such as JP Morgan, Actis and IL&FS for selling stakes in some of its projects to raise much-needed fund for the development. Sobha is also planning a qualified institutional placement to reduce debt burden by almost eight hundred crore rupees this fiscal. The capital raised through QIP is used for paying off its debt while roping in financial investors at special purpose vehicle level is about kick-starting certain projects with near-term development horizon.
Sobha Developers carries a debt of Rs 1,850 crore. Sobha is looking to earn up to Rs 1,500 crore via the QIP route in the coming weeks. The exact quantum of the mop-up would be announced soon.
The developer has been looking at a three-pronged approach in its capital raising plans. First one is QIP at entity level, second is SPV deals and last one is divesting some of its land bank assets.
