Sunteck Realty to raise Rs 500cr via QIP

Sunteck Realty, a player in the real estate sector, will raise additional capital Rs 500 crore through Qualified Institutional Placement (QIP) route. The funds raised through the QIP will be deployed for acquiring projects and strengthen its project pipeline. The shareholders have approved the proposal.

Additionally, the company has decided to do a 1- for-5 split of its equity shares. As of August 30 2009, Sunteck had 1.20 crore equity shares of par value of Rs10 each. Upon the shareholders approval, the number of the share increases to 6 crore, at a value of Rs 2 each.

Kamal Khetan, managing director said, "We have received approval from our shareholders on both our proposals of raising additional capital and stock split. This reflects the confidence in the future growth of the company. The proceeds will be used to expand our presence in the real estate space.”