Brigade Enterprises To Raise Rs 400 Crore debt for its business growth
Brigade Enterprises, which has a presence in residential, commercial and retail segment of the real estate industry, is planning to raise around Rs 400 crore debt during present financial year to fund its future business growth. “We will raise around Rs 300 crore-Rs 400 crore in the present financial year to fund our future business growth,” Shama Sunder, chief financial officer of Brigade Enterprises, said. He also said that the company was in talks with banks to raise the amount and was expected to close a deal in the near future.
“Though the cost of borrowing is slightly up, we don’t have any plans to raise money through the PE route,” he said. Brigade Enterprises, which has a debt-equity ratio of 0.7 by March, 2011, will not see any change in this ratio despite the proposed debt raising by the company. “As repayment of our present debt is going on schedule, debt-equity ratio of the company will remain at the current level despite the proposed fund raising plans,” Sunder added.
Brigade Enterprises,one of South India’s leading property developers, plans to launch around 9.2 million sq ft of new projects in Bangalore, Hyderabad, Chennai along with some of the tier-II cities of Karnataka like Mangalore and Mysore among others in the future. Brigade Enterprises has posted a 2.5 times rise in its net profit to Rs 120.52 crore in the last financial year as compared with Rs 47.32 crore reported in the same period last year.
Net sales of the company rose by around 30 per cent to Rs 460.81 crore in FY11 as compared with Rs 354.85 crore reported an year earlier.
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