Embassy Developments Limited , a prominent player in the real estate sector, has made a significant move to strengthen its capital structure. The company has allotted 53.8 lakh equity shares to Bellanza Developers Private Limited through a warrant conversion, valued at ₹45.00 crore.

Details of the Share Allotment

Embassy Developments issued and allotted 53,80,500 fully-paid equity shares with a face value of ₹2 each. This allotment was made at an issue price of ₹111.51 per share, which includes a premium of ₹109.51. The shares were issued to Bellanza Developers Private Limited following the conversion of an equivalent number of warrants.

Financial Implications

The transaction resulted in Embassy Developments receiving a balance consideration of ₹44,99,84,666.25 from Bellanza Developers. This amount represents 75% of the total issue price for the exercised warrants, with the remaining 25% having been paid earlier when the warrants were initially issued.

Impact on Shareholding

Following this allotment, Bellanza Developers' stake in Embassy Developments has increased. The company's shareholding has grown from 9,05,49,979 shares (6.63% of the total) before the allotment to 9,59,30,479 shares (7.00% of the total) post-allotment.

Capital Structure Update

As a result of this share issuance, Embassy Developments' paid-up equity share capital has expanded to ₹2,74,24,57,926, comprising 137,12,28,963 equity shares.

Background on Warrant Issuance

This allotment is part of a larger warrant issuance that took place on May 21. At that time, Embassy Developments had issued 10,31,29,765 unlisted warrants to Bellanza Developers, convertible into an equivalent number of equity shares within 18 months of allotment.

Regulatory Compliance

The company has made this disclosure in compliance with Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015. The allotment adheres to the terms approved by shareholders on April 30, and is in line with in-principle approvals received from the BSE Limited and National Stock Exchange of India Limited on May 9.

This strategic move by Embassy Developments underscores the company's efforts to optimize its capital structure and potentially fund its growth initiatives in the dynamic real estate market.

Embassy Developments , a key player in the Indian real estate sector, has made significant strides in expanding its project portfolio. The company recently inked agreements to manage development and marketing activities for two housing projects, strategically located in Mumbai's Juhu area and Bengaluru's Hebbal location.

Revenue Projections

The company anticipates generating revenue of Rs 560.00 crore from these deals, which represents a 10% development management fee. This fee is calculated based on the projects' total estimated revenue of Rs 5,600.00 crore, highlighting the substantial scale of these undertakings.

Recent Financial Performance

While Embassy Developments is poised for future growth with these new projects, its recent financial results paint a mixed picture:

The company reported a consolidated net loss of Rs 165.84 crore in the April-June quarter, a stark contrast to the net profit of Rs 122.49 crore recorded in the same period last year. However, there was a positive trend in total income, which increased to Rs 694.05 crore from Rs 557.52 crore year-over-year.

Company Profile

Embassy Developments serves as the flagship company of the Embassy Group, a prominent name in the Indian real estate landscape. The group's diverse portfolio extends beyond residential and commercial real estate:

• It promotes WeWork India, part of the global co-working space provider.
• The group also sponsors Embassy Office Parks REIT, India's first publicly listed Real Estate Investment Trust.

These new project management deals in Mumbai and Bengaluru could potentially bolster Embassy Developments' position in the residential real estate sector, despite the recent financial challenges faced by the company.