The DCM group is planning to dilute its holding in infrastructure development associate firm DCM Estates and Infrastructure (DEIL) in favour of its Mauritius-based partner ¡ª Tiara Investment Holding Ltd.
Under a rehabilitation scheme penned for DCM and DEIL, the promoters have decided to issue fresh equity in favour of Tiara to raise Rs 26 crore. The proceeds from this stake sale will be used to fund development of its stalled projects, including development of DCM land at Bara Hindu Rao and construction of commercial-cum-residential complex.
The firm has sought FIPB nod to go ahead with the stake sale. Tiara already owns 32.5% stake in the company and this additional equity purchase would hike its holding to 59%.
The inflow of Rs 26 crore as additional equity, it said, is an integral part of the restructuring scheme for DCM Estates (DEIL) which presently owes restructured loan of Rs 86.27 crore to FIs and banks. ¡°The stalled projects of DEIL will be revived with these funds,¡±it said.
Proceeds from the delivery of these developments to purchasers will help DEIL rehabilitate its associate company DCM Ltd. ¡°Besides investing in DEIL, Tiara is expected to bring latest technologies for development of infrastructure facilities into India ,¡± the firm said.
DCM Estates was incorporated in 1991 as DCM Properties. The firm was promoted by DCM group to undertake real-estate development, construction and maintenance of industrial estates, commercial centres, shopping malls, residential and multi-storeyed buildings.
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