Albeit the name of Sobha Developers remain obscure in some Indian metropolises (number is dwindling steadily), the name is worth mentioning in the realty industry of Bangalore. In a few words, Sobha Developers is the Bangalore-based publicly-held real estate developer and analysts consider it as one of the most responsible agents behind the development of this Indian Silicon Valley. Why is it news at present? Sobha Developers is learnt to be entailed in discussions to raise Rs 300 crore at project levels.
Is there any possibility then? Nothing is confirmed yet; nevertheless, analysts seem to be optimistic and as per a considerable section of them, this will be the second major triumph of this classy realty developer. It is worthwhile to mention that Sobha Developers raised Rs 225 crore during the second half of 2009 from a fund sponsored by Infosys co-founder N S Raghavan.
However, this is not all. Aside from the SPV fund raising, Sobha Developers has also raised Rs 530 crore by means of the Qualified Institutional Placement route in 2009 and any success at this time will raise the company’s fame to a new height. Now you have surely got inquisitive to ask a relevant question. What makes Sobha Developers do all these? Well, the first and foremost objective of Sobha Developers, through these, is to lessen its leverage on debt and it, by now, has managed to reduce the ratio to 0.8 from a peak of 1.6 on a debt of close to Rs 1,900 crore.
The debt, at this instant, is at Rs 1,450 crore and the company intends to have the leverage at 0.7 by March 2010 and bring it down further to 0.5 by March 2011.
If we rely on industry sources, it has to be noted that Sobha Developers is on the brink of selling two land parcels in Bangalore covering a total area of almost 44 acres and this should carry Rs 120 crore. Is this a ploy of Sobha Developers to set up nationwide tentacles?
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