The board of directors of Oberoi Realty has approved a securities subscription agreement (SSA) with Alpha Wave Ventures II, LP, Vikas Oberoi, and I-Ven Realty (I-Ven).
Under this agreement, Alpha Wave Ventures II, LP will subscribe to (i) 2,77,778 Series A Compulsorily Convertible Preference Shares (CCPS) for Rs 44,999.964 per share, and (ii) 10 Class A equity shares at Rs 10 each, totaling Rs 1,250 crore and representing 21.74% of I-Ven’s shareholding on a fully diluted basis.
I-Ven is a joint venture between Oberoi Realty and Vikas Oberoi, with shares held equally. As part of the agreement, I-Ven will restructure the funds Oberoi Realty and Vikas contributed. The company will conduct a rights issue of redeemable preference shares at Rs 400 per share, which will be offered to Oberoi Realty and Vikas in equal parts over multiple tranches.
The proceeds from this issue will primarily be used to repay outstanding loans and redeem existing preference shares held by Oberoi Realty and Vikas. The board has also approved the subscription of up to 41,25,000 redeemable preference shares, amounting to Rs 165 crore.
