Oberoi Realty's Board Approves Plan to Raise Up to Rs 6,000 Crore

Oberoi Realty's board of directors has given the green light to raise up to Rs 6,000 crore, with plans to execute this in one or more tranches. According to an exchange filing on Friday, the funds will be raised through various financial mechanisms, which could include issuing equity shares, eligible securities or other financial instruments or a combination of these. 

The company may opt for methods such as private placements, qualified institutional placements (QIP) or any other approved mode deemed suitable. This fund-raising plan is, however, subject to receiving necessary approvals from shareholders and regulatory bodies. 

This development follows a significant acquisition made by Oberoi Realty in August when the company took over Nirmal Lifestyle Realty Private Ltd. (NLRPL) under the Insolvency and Bankruptcy Code (IBC) of 2016. NLRPL holds the development rights to 20,262.40 square meters of prime land on L B S Road in Mulund West, Mumbai. 

The land, strategically located next to Oberoi Realty’s existing residential project, Eternia, is expected to bolster the company’s development portfolio. As part of the acquisition deal, Oberoi Realty is committed to paying Rs 273 crore to creditors, along with covering the Corporate Insolvency Resolution Process (CIRP) costs. Additionally, the company will acquire 100% of NLRPL’s equity share capital for a nominal price of Rs 1 lakh. 

Financially, Oberoi Realty has shown impressive performance in the first quarter of FY25. The company reported a revenue of Rs 1,441.95 crore, reflecting a 54.5% year-on-year growth. Its earnings before interest, taxes, depreciation and amortization (EBITDA) for the same period stood at Rs 815.05 crore, highlighting strong operational efficiency. The company also posted a robust profit after tax of Rs 584.40 crore in Q1 FY25. These figures underscore the company’s solid market position, with its total market capitalisation currently standing at approximately Rs 69,075.33 crore. 

As Oberoi Realty continues to expand its footprint in the Mumbai real estate market, this latest capital-raising initiative is expected to fuel further growth and development projects, while enhancing its financial strength and market presence.