Sobha Developers in talks with banks for debt revamp
The Hindu Business Line, March 26, 2009, Page 2
Our Bureau
Bangalore, March 25 Sobha Developers is in talks with banks, financial institutions and private funds to restructure over Rs 1,000 crore of its total debt of about Rs 1,800 crore.
“We feel that banks, financial institutions and funds have agreed to support us. A clearer picture will emerge in the next 2-3 weeks,” said Mr J.C. Sharma, Managing Director, Sobha Developers.
He added that the company had no overdue in principal payment, nor were there any interest delays. “We are confident that we could bring down the debt-equity ratio to less than 1:1,” said Mr Sharma.
The current debt equity ratio is 1.56:1. The company is open to “even 49 per cent participation from private equity players at a special purpose vehicle (SPV) level,” he added.
“There is no further bad news; so we should do better in the coming financial year,” said Mr Sharma, adding that the company’s contractual income would be significantly higher at Rs 400 crore in the next year.
Though the cash flows, at Rs 50-60 crore a month, are still not normal, he said, the company is hopeful that cash flows would be at Rs 100-a-month level, which it enjoyed till July-August last year. “In two-three quarters from now, cash flows will go to Rs 100 crore a month,” he said.
The company, which has about 1,400 units under various stages of construction over 18 projects in Bangalore, is hopeful of getting bulk deals from institutions in the days to come. The dependence on the IT sector for apartment sales has come down to 20 per cent now from about 40-45 per cent three years ago, said Mr Sharma.
Sobha Developers hopes to launch two projects – one each in the luxury and affordable segments – soon.
The real estate company, which had about 3,000 staff in September 2007, has about 2,200 staff on its rolls now, due to “lay-offs and high attrition,” said a company executive.
The Hindu Business Line, March 26, 2009, Page 2
Our Bureau
Bangalore, March 25 Sobha Developers is in talks with banks, financial institutions and private funds to restructure over Rs 1,000 crore of its total debt of about Rs 1,800 crore.
“We feel that banks, financial institutions and funds have agreed to support us. A clearer picture will emerge in the next 2-3 weeks,” said Mr J.C. Sharma, Managing Director, Sobha Developers.
He added that the company had no overdue in principal payment, nor were there any interest delays. “We are confident that we could bring down the debt-equity ratio to less than 1:1,” said Mr Sharma.
The current debt equity ratio is 1.56:1. The company is open to “even 49 per cent participation from private equity players at a special purpose vehicle (SPV) level,” he added.
“There is no further bad news; so we should do better in the coming financial year,” said Mr Sharma, adding that the company’s contractual income would be significantly higher at Rs 400 crore in the next year.
Though the cash flows, at Rs 50-60 crore a month, are still not normal, he said, the company is hopeful that cash flows would be at Rs 100-a-month level, which it enjoyed till July-August last year. “In two-three quarters from now, cash flows will go to Rs 100 crore a month,” he said.
The company, which has about 1,400 units under various stages of construction over 18 projects in Bangalore, is hopeful of getting bulk deals from institutions in the days to come. The dependence on the IT sector for apartment sales has come down to 20 per cent now from about 40-45 per cent three years ago, said Mr Sharma.
Sobha Developers hopes to launch two projects – one each in the luxury and affordable segments – soon.
The real estate company, which had about 3,000 staff in September 2007, has about 2,200 staff on its rolls now, due to “lay-offs and high attrition,” said a company executive.
Posts
No comments:
Post a Comment