Embassy REIT said on Monday that it had completed a capital raise of $501 million through an Institutional Placement of units.
The Securities Committee of the board of Embassy Office Parks Management Services Private Ltd., manager to Embassy REIT, approved the issuance and allotment of 111,335,400 new units through this placement on December 22, the company said in a release.
Trading of these units is expected to commence on or about December 24 on the National Stock Exchange and the BSE.
The Institutional Placement was unveiled on December 15 and witnessed strong demand from both existing as well as new institutional investors, including global and domestic investors, pension funds, insurers, and alternative asset managers, it added.
The issue price of ₹331 per unit represents a discount of 4.99% to the applicable floor price of ₹348.38 calculated in accordance with SEBI regulations.
According to the statement, Embassy REIT proposes to use the proceeds to fund its proposed acquisition of Embassy TechVillage (ETV) that it announced on November 17.
Embassy REIT is acquiring ETV from the Embassy Sponsor, members of the Blackstone group and other selling shareholders, for an enterprise valuation of $1.3 billion.