Realty developer Arihant Superstructures has decided to sell a 7-acre land parcel in Jodhpur out of its total 25-acre landholding in the city.
The company is planning to utilize the proceeds of this transaction to repay part of unsecured debt and for additional working capital for its Jodhpur business.
“On the executive committee’s recommendations to the audit committee on the Jodhpur projects, the lands have been identified, where there is no visibility in the nearest future of five-plus years. This will help to lower the debt to equity ratio, and also the interest cost to the expenditure,” the company said in a regulatory filing.
The company’s board has constituted a sub-committee consisting of an independent director Virendra Mittal, whole-time director Nimesh Shah and its chief financial officer Deepak Lohiya. This sub-committee is expected to submit its report on or before November 25.
The board has also excluded the company’s Chairman Ashok Chhajer, who hails from Jodhpur, from decisions related to this transaction till the execution of sales proceedings. On Friday, shares of Arihant Superstructures closed at Rs 21.75, up 1.6% over the previous close.