CHD Developers raises Rs 87 cr via equity shares, warrants

Realty firm CHD Developers has raised Rs 87 crore through issue of equity shares and warrants on preferential basis to promoters and investors, including Ashish Kacholia.

CHD Developers has allotted 1.5 crore equity shares and 4.5 crore fully convertible warrants at an issue price of Rs 14.52 per share/warrant on preferential basis.

"We will be raising Rs 87 crore through issue of equity shares and warrants. About Rs 38 crore has already been raised and rest Rs 49 crore will come into the company in the next 18 months when warrants get converted into equity shares," CHD Developers MD Gaurav Mittal told PTI.

He said the promoters will infuse about Rs 22 crore in the company while about Rs 50 crore by Ashish Kacholia and the rest by other investors.

"The funds raised will be utilised to meet construction cost of four ongoing projects in Karnal and Gurgaon in Haryana," he said.

The fund raising has helped in improving the company's debt-equity ratio and market capitalisation, Mittal added.

Promoters stake will come down to around 62 per cent from the current 70 per cent post allotment of 1.5 crore equity shares. The stake will further come down to about 55 per cent after 4.5 crore warrants get converted into equity shares over the next 18 months.

"At CHD, we believe in timely delivery and we are sticking to the commitment. We are thankful to our patrons and investors for their overwhelming response," he said.