Parsvnath to raise Rs 1,090 cr from its IPO

October 28, 2006	(Be the first to rate this story!)  Loading ...
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Real estate firm Parsvnath Developers Ltd (PDL) plans to raise Rs 1,090 crore from its Initial Public Offer, which will hit the capital market on November 6, to finance the construction of its ongoing 11 projects.

“We are currently executing 90 projects aggregating to a saleable area of over 108 million sq ft. We are planning to raise Rs 1,090 crore to meet the construction cost of 11 projects,” PDL Chairman Pradeep Jain said.

Public issue, which closes on November 10, comprises 36,325,800 shares of Rs 10 each including a green shoe option of 30,87,800 shares and the company has fixed the price band of Rs 250-300.

The issue comprises a reservation of two lakh shares for subscription to employees, thus the net issue to the public would be up to 33,038,000 equity shares.

The company would raise Rs 1,090 crore at the higher band and about Rs 908 crore at the lower band.

The post issue dilution of the company’s share would stand at 19.7 per cent if the green shoe option is exercised.

Enam Financial Consultants, J M Morgan Stanley and DSP Merrill Lynch are the book running lead mangers of the issue.

City-based company, which is having a presence in 14 states and 41 cities across India, is currently developing 90 projects at a cost of Rs 13,270 crore that is scheduled to be completed within next 3-5 years.

“We have a pan India presence and we are in all verticals of real estate development,” Jain said.

Of the total projects, residential accounts for 25, followed by 20 integrated townships, commercial 16, hotels 14, metro malls 11 and four IT Parks.

Source from The Hindu

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