OMAXE

Omaxe pledges approx 15% stake to Indiabulls Fin

The promoters of Omaxe have pledged nearly 15% stake to Indiabulls Finance to raise capital. Rohtas Goel, Chairman and MD of Omaxe has clarified that the company’s shares that are pledged are in lock-in period. The company needed money urgently and hence they had to go for pledging, Goel said. Omaxe has raised Rs 300 crore with an average cost of 12% per annum.

Excerpts from CNBC-TV18’s exclusive interview with Rohtas Goel:


Q: Why exactly are the promoters pledging a stake to Indiabulls, would there not be easier ways for Omaxe to raise money?

A: There are lots of easier ways also; we are doing a lot of exercise for raising the funds. But if there are very good opportunities and suddenly one requires money, then pledging money is not a bad idea and I have done it. I have not sold shares because the shares are in lock-in period and it is purely a financial deal. I have borrowed some money from Indiabulls, but not sold the stake in Indiabulls.



Q: You could have raised debt as a company, Omaxe could have on its balance sheet raised debt or you could have actually play some stocks and raised money or you could have done convertible if the issue is not to dilute equity right now - why did you choose none of these options, but pledge your stake to borrow money from a financer?

A: A great opportunity was there and I have got just two days time for that. It was an emergency for me and since we have to raise the money, I do not think it is a bad idea. The average funding rate comes out to 12% only; this because we are doing a lot of exercise for raising the funds.



Q: This sounds a bit concerning that it was an emergency, how much money is it that Indiabulls has given you for this large 15% chunk and what is this big opportunity that you have needed the money for?

A: I cannot disclose the big opportunity to you right now, but the money is Rs 300 crore.

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