Omaxe IPO Finally Gets Sebi Nod

May 23, 2007	(1 votes, average: 1 out of 5)  Loading ...
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One of India’s leading property developers, Omaxe Ltd. has got a nod from stock market regulator Securities and Exchange Board of India (SEBI) for its initial public offering of 17.8 million equity shares. Earlier, it was DLF, Indian real estate giant, to get approval for an IPO in May.

However, Omaxe has not yet decided on the timing and the price band for the shares. The company is waiting for feedback from its bankers who will determine all its options before it can take any significant decision, says a company official.

Omaxe IPO comes at a time when big players like ICICI bank Ltd. and DLF Ltd are likely to tap the market. Both the companies are known to be among the biggest sales from the Indian market.

The present time can not be taken as the best time for IPOs of real estate companies as property prices in India are not following a consistent trend. They are either sliding or remain stable, arresting at least three straight years of profits, says Manish Gunwani, vice-president, Brics Securities.

Since the Reserve bank of India (RBI) has been cautioning banks against their excessive exposure to real estate companies, latter has come under a tight scrutiny.

SEBI wants an increased transparency in the market, especially with regard to the ownership of land.

Omaxe will now update its draft red herring prospectus to add details that the regulator has asked for.

SEBI has released some guidelines for the company’s red herring prospectus related to disclosures. And, it is mandatory for the company to follow them and, therefore, the prospectus will have to be modified to comply with the details, adds the company’s official.

Omaxe had filed its draft red herring prospectus with Sebi in December. Of the total equity float, 17.5 million equity shares are for public, while the balance 2.97 lakh shares are reserved for eligible employees of the company.

Omaxe filed its prospectus with Sebi in December. Of the total equity float, 17.5 million equity shares will be released for public whereas the remaining 2.97 lakh shares are reserved for the company’s employees.

News Published Under:   Real Estate Developers |

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