In a bold move, Phoenix Mills has raised an amount equivalent to almost 40% of its market capitalisation by issuing $246 million of new shares in a Qualified Institutional Placement QIP, with the proceeds going to fund an acquisition. The target is unlisted Atlas Hospitality, a hotel operator with projects in Mumbai, Chennai, Pune and Agra.
The acquisition follows a merger of Phoenix Mills with Ashok Ruia Enterprises, approved in March this year, but not yet finalised.
Following Wednesday's deal, the companyÆs family shareholder saw its stake drop from 74.8% with a freefloat of 25.2%, to 50.3% with a freefloat of 49.7%.
The deal will help take the company a step further from its...
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