The Hindu Business Line : Parsvnath to raise Rs 1,090 cr through IPO

The New Delhi-based real estate company Parsvnath Developers is coming out with a public issue of 3.3 crore equity shares of Rs 10 each through the book building process in the price band of Rs 250 to Rs 300 per share.

In this price band, the offer size will range from Rs 908 crore to Rs 1,090 crore. Part of the net proceeds will be deployed in various ongoing projects across India and the balance for general corporate purposes including brand building and beefing up marketing.

"We have identified 12 projects across a range of various verticals (like malls, multiplexes and integrated townships and commercial complexes) of real estate development," said Mr Pradeep Jain, Chairman of Parsvnath Developers. The company's future projects, however, will be financed through internal accruals, added Mr Jain.

The issue, forming 18.3 per cent of the post issue paid-up capital of the company, will open on November 6 and close on November 10.

About 60 per cent of the issue will be allocated on a proportionate basis to qualified institutional buyers (QIBs), 5 per cent of which will be allotted on a proportionate basis to mutual funds alone. Up to 10 per cent of the net issue to public shall be available on a proportionate basis to non-institutional bidders and around 30 per cent will be for retail individual bidders.

. Mr R. Gupta, Vice-President, Finance and Taxation, told Business Line, "We have acquired land for most of the nine SEZ projects giving us the required edge over our immediate competitors".

The company is currently engaged in a variety of projects, involving 20 integrated townships, 25 residential projects, 27 commercial complexes including shopping malls, multiplexes, office space and a complete metro station in Delhi.

The company has obtained in-principle approvals for the development of nine SEZ projects, the latest being the IT/ITES SEZ at Ernakulam in Kerala.

Enam Financial Consultants Ltd, JM Morgan Stanley and DSP Merrill Lynch are the book running lead manager to the issue.

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