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Anjana Chandramouly

Bangalore, July 8 Sobha Developers hopes to raise up to Rs 250 crore during the course of this year through private placements or sale of land.

The company is actively engaged in discussions with investors for the same, Mr J.C. Sharma, Managing Director, told Business Line.

“If these funds are also raised, then our viability in operations will improve multi-fold,” he said. Cash flows are more than comfortable after the QIP, he said, without divulging further details.

The company, which had a debt of about Rs 1,900 crore, has successfully re-aligned its bank debt of over Rs 1,000 crore, he said. “We need to raise Rs 150-250 crore, but we have time till March 31, 2010. By the end of this financial year, we hope to bring down the debt-equity ratio to 0.5 or less,” he added.

The company has secured funds of Rs 750 crore through private equity and a recent qualified institutional placement (QIP). It had raised Rs 225 crore from Purna Partners, PE investors, and Rs 526.8 crore through QIP.

Mr Sharma said that the funds raised through QIP will help the company bring down its debt-equity ratio to less than 1. Its current debt-equity ratio is 1.65.

The company has also seen a gradual increase in its sales in the first quarter of this financial year. “In fact, June this year has been very good for us,” said Mr Sharma.

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