Omaxe Limited has informed the Exchange about Fund Raising.
OMAXE · price
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Awaiting price reaction for this filing.
Omaxe Limited's Board has approved raising Rs. 199.40 Crore by issuing up to 1,994 unrated senior secured Non-Convertible Debentures (NCDs) of Rs. 10 lakh each on a private placement basis. The NCDs carry a committed return of 12% IRR with a tenure of up to 54 months. The issue is secured by first charge on project assets including Grand Omaxe, Rajguru & Bhagat Singh project, and Project Resort-A&B in Chandigarh, along with personal guarantees from promoters Rohtas Goel and Mohit Goel and several group companies. The NCDs will not be listed on stock exchanges. Additionally, Mr. Satbir Singh (ex-IFCI Deputy General Manager with 35+ years of experience) has been appointed as an Additional Independent Director for three years.
The 12% IRR on these NCDs is a high-cost borrowing, which will increase interest expenses and pressure cash flows, though it provides funding for ongoing projects. Existing shareholders may see dilution of cash flows available for dividends. The unrated nature and private placement suggest difficulty in raising cheaper debt, which is a negative signal for retail investors.