Omaxe defers mega fund-raising plan.

Delhi-based real estate developer Omaxe has postponed its plan to raise Rs 1,500 crore through private placement until a favourable time.
This follows Unitech’s decision to put on hold $1.5-billion qualified institutional placement (QIP), and Emaar MGF’s initial public offer (IPO), which was withdrawn midway. Industry insiders say the delay in fund-raising plans is unlikely to have any immediate impact on earnings.
Mr. Vipin Aggarwal, Executive director, Omaxe, said “We are waiting for the market to stabilize before we go in for private placement. We may not get the right valuation in the present situation”. Omaxe had originally planned to raise Rs 1,500 crore by issuing fresh equity to institutional investors.
The company intended to use the sale proceeds to buy land. On that issue, Mr. Aggarwal said, “The stake sold through this process could have been close to 15%”. At this rate, the transactions could have given Omaxe a valuation of Rs 10,000 crore, close to the company’s market capitalization during mid-December.
The Omaxe stock price had touched a high of Rs 613 on December 13, 2007, on BSE. It has lost almost two-thirds of its market cap since then. Omaxe scrip closed at Rs 221.60 on Wednesday on BSE, 5% down from the previous day’s close.
The promoters, Rohtas Goel and family, hold 89.3% stake in the company. Last December, the promoters pledged their 15% stake to Indiabulls for Rs 300 crore.
The company is engaged in developing several group housing, integrated townships, shopping malls, multi-product SEZ and hotels. It has recently won the bid to develop 393-acre township at Naya Raipur, Chhattisgarh, at a cost of Rs 1,800 crore.

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