Phoenix Mills board OKs raising up to Rs 1,000 crore

MUMBAI: The Phoenix Mills Ltd has decided to raise up to Rs 1,000 crore through issue of equity shares or convertibles including a QIP or an overseas issue in one or more tranches, the company informed Bombay Stock Exchange.

The company is planning to utilize these funds for fast track completion of balance phases of ongoing projects, finance acquisition of new projects and augment working capital requirement. The amount raised can also be utilized for increasing funding requirements of investment in subsidiaries and consolidation of holdings in its project special purpose vehicles.

The Phoenix Mills will be raising the fund through issue of equity shares or convertible instrument to qualified institutional buyers in one or more tranches, the company said.

"This is just a routine enabling resolution and the company is not required to raise these funds immediately," said Shishir Shrivastava, managing director and CEO of The Phoenix Mills.

Phoenix Mills has also decided to increase the limit of foreign institutional investors' holding in the company up to the sectoral limit.

On Wednesday, the board of directors approved both the proposals, subject to authorization at extraordinary general meeting and receipt of relevant approvals.

On Thursday, shares of Phoenix Mills closed at Rs 215.05 on the BSE, nearly flat from Wednesday's close.