An investment entity has received approval from the national competition regulator for its proposed investment in a real estate development firm through a combination of preferential allotment and secondary share purchase. Earlier in the year, the real estate firm had announced a proposed equity infusion via preferential allotment and secondary share acquisition by an affiliate of the investing entity.

The transaction involves a two-pronged investment structure with a cumulative value of approximately ?1,167 crore. As part of the deal, the real estate firm will issue 1,26,75,685 equity shares on a preferential basis to the investing affiliate. The shares, with a face value of ?10 each, are priced at ?329 per share, amounting to a total infusion of ?417.03 crore.

Following completion, the investing entity will hold 40% of the real estate firm’s equity capital, excluding the open offer. Subject to full acceptance of its open offer for an additional 26% stake from public shareholders, its total holding may rise to 66%.

After the transaction, the promoter group’s shareholding will decline from 59.52% to 33.81%, reflecting significant stake dilution by key members of the promoter family and other associated individuals.

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