“We are bullish on Indian real estate. The fundamentals of many realty companies are still strong,” Kotak Reality Fund CEO S SrinivasanKotak Reality converted the warrants at Rs 1,167 per share. On Thursday, Sunteck Realty shares ended down 2.8% at Rs 1,547 on BSE.
In October 2007, Kotak Realty had agreed to pick up 10% stake in Mumbai-based developer Sunteck for Rs 140 crore. Kotak had said that the investment was through a combination of equity and convertible preference shares, which on conversion would result in a 10% in the company on a fully-diluted basis.
Kotak Realty has routed the investment in Sunteck through investment fund Kotak Alternate Opportunities India Fund. The investment was one of the first investments of Kotak Realty in the listed realty firms.
Sunteck Realty is developing residential and commercial projects in Mumbai, Goa, Pune, Nagpur, Chennai and Oman. Currently, the firm has 25 million sq ft under development.
Warrants are quasi-equity instruments that give the holder the right to convert them into equity at an agreed price within a specified timeframe.
To read more, please, visit - Rajesh Unnikrishnan-The Economic Times
What is your take on the fundamentals of real estate companies?Can you name any Pune based real estate company which has "strong fundamentals"? How about Paranjape Schemes (Constructions) Ltd. or D.S. Kulkarni Developers Ltd.? Please, share your views in the comments. (Comments Policy)
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