Anant Raj Ind to raise Rs 2,000 cr; shares hit upper circuit

Real estate developer Anant Raj Industries today said it will raise Rs 2,000 crore by issuing securities, including ADRs and FCCBs, to qualified institutional buyers (QIBs) on a private placement basis.

The board of directors has approved "the raising of funds up to Rs 2,000 crore by issue of securities through private placement to the QIBs," Anant Raj Industries said in a filing to the Bombay Stock Exchange(BSE).Apart from allotment of securities on a QIP basis, the company may opt for issuance of American depository receipts (ADRs), global depository receipts (GDP), foreign currency convertible bonds (FCCBs) or similar means, it said.     

The board has also approved the issuance of convertible warrants to its promoters on a preferential allotment basis, the filing added.

The company would hold an extra-ordinary general meeting (EGM) of its shareholders on June 25 to seek their approval for the raising of funds.

Following the announcement, Anant Raj surged five per cent and hit the upper trading limit of Rs 127.45 on the BSE.

Reeling under acute cash crunch, a host of real estate companies are now resorting to QIP and preferential allotment of warrants to promoters to strengthen their cash balance.Earlier this week, Hindustan Construction Company had also said it will raise Rs 1,500 crore through a private placement of securities to institutional investors.

Indiabulls Real Estate has raised Rs 2,656.50 crore through placement of securities to QIBs, while HDIL said it would raise funds by way of QIP.

The country's second largest realty firm, Unitech, had said it would issue warrants worth Rs 1,000 crore to its promoters, thereby raising their stake by about 10 per cent in the company.  

Last month, it had raised Rs 1,600 crore through QIP to fund various projects and pay off part of its Rs 8,400-crore debt.