Phoenix Mills' QIP at discount

Mall operator cum real estate developer Phoenix Mills, has, yesterday, closed QIP of 79.91 lakh shares of face value Rs. 2 each at a price of Rs. 353.60, at a 5% discount to the floor price of Rs. 372.20 per share. Company has raised Rs. 282.59 crore via this 5.23% dilution. However, the share price is ruling soft this morning, at Rs. 364.50, just a rupee above yesterday’s closing price of Rs. 363.75 on NSE. Volumes are also very thin, in the flat market.

As of 31-3-15, company’s equity stood at Rs. 28.98 crore. Promoters held 65.93% while FIIs owned 24.24% and DIIs 4.23%, leaving only 5.60% as non-institutional float. Post the QIP, while equity will expand to Rs. 30.58 crore, promoter holding will shrink to 62.48% while institutional share will rise to 32.21%.

For FY15, company’s consolidated revenue was rose 14% YoY to Rs. 1,653 crore while net profit declined to Rs. 36 crore, from Rs. 128 crore in FY14, mainly due to exceptional losses.