Oberoi Realty has approved a securities subscription agreement (SSA) to sell 21.74% of its shareholding in I-Ven Realty to Alpha Wave Ventures II, LP for a total consideration of Rs 1,250 crore. Under the agreement, Alpha Wave Ventures will subscribe to 2,77,778 Series A Compulsorily Convertible Preference Shares (CCPS) at a price of Rs 44,999.964 per share, along with 10 Class A equity shares at Rs 10 per share, bringing its total investment to Rs 1,250 crore.
I-Ven Realty, a joint venture between Oberoi Realty and Vikas Oberoi, holds shares in equal proportions between the two parties. As part of the deal, I-Ven Realty will undergo a restructuring process, including a rights issue of redeemable preference shares (RPS) at Rs 400 per share, which will be offered to Oberoi Realty and Vikas Oberoi in equal parts.
The funds raised through the rights issue will primarily be used to repay outstanding loans and redeem existing preference shares held by Oberoi Realty and Vikas. Additionally, the Oberoi Realty board has approved the subscription of up to 41,25,000 redeemable preference shares for a total amount of Rs 165 crore.