A clutch of investors including stock brokers Rakesh Jhunjhunwala and Radhakrishna Damani have picked up an 11% stake in Mumbai-based real estate and hospitality firm Delta Corporation Ltd. for Rs200 crore, a banker familiar with the development said.
The investors will get equity for Rs120 crore and will further subscribe to Rs80 crore of warrants that can later be converted into stock. Jhunjhunwala will join the Delta Corp. board.
India’s leading corporate lawyer Zia Mody of AZB Partners Ltd and her husband Jayadev Mody will invest Rs70 crore as part of the promoters’ contribution. Both together own 48.40% in the real estate developer.
An announcement is expected to be made later in the evening today.
On 17 September, the company had informed the Bombay Stock Exchange that the board would consider a preferential allotment to one or more investors to raise up to Rs275 crore in a meeting on 20 September.
Source: Livemint