Embassy REIT said on December 21 that it completed a unit capital raise of $501 million through an Institutional Placement of units.
The Securities Committee of the Board of Directors of Embassy Office Parks Management Services Private Limited (EOPMSPL), Manager to Embassy REIT, approved the issuance and allotment of 111,335,400 new units through this Institutional Placement on December 22 said the company in a release.
Trading of these units is expected to commence on or around December 24 on NSE and BSE exchanges. The Institutional Placement launched on December 15 and witnessed strong demand from both existing as well as new institutional investors — both global and domestic, pension funds, insurers, and alternative asset managers, it further said.
The Placement issue price of ₹331.00 per unit represents a discount of 4.99% to the applicable floor price of ₹348.38 per unit calculated in accordance with SEBI regulations.
According to the statement, Embassy REIT proposes to use the proceeds from this Placement to fund its proposed acquisition of Embassy TechVillage (ETV) that it announced earlier on November 17. Embassy REIT is acquiring ETV from the Embassy Sponsor, members of the Blackstone group and other selling shareholders, for a total enterprise valuation of $1.3 billion.
