Business Daily from THE HINDU group of publications
Saturday, Jan 13, 2007
ePaper
Business Daily from THE HINDU group of publications Saturday, Jan 13, 2007 ePaper |
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Markets
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IPOs Our Bureau
TRYING NEW GROUND: Mr Hement Shah (left), Chairman, Akruti Nirman Ltd, with Mr Vyomesh Shah, MD, at a press conference to announce the company's IPO in Mumbai on Friday. - Paul Noronha
Mumbai , Jan. 12 Real estate development company Akruti Nirman Ltd has fixed a price band of Rs. 475-540 per share for its initial public offering of 6.7 lakh equity shares. The issue opens on January 15 and closes on January 19. At the higher end of price band, the company would raise Rs 360 crore through the issue, which would constitute 10.04 per cent of the post-issue paid-up capital of the company. The issue will be a 100 per cent book built one. Sixty per cent of the issue will be allotted to qualified institutional bidders of which 5 per cent will be reserved for mutual funds. Not less than 10 per cent of the issue will be available for non-institutional bidders, while 30 per cent will be available for retail individual bidders on a proportionate basis.
Financing acquisition
The company proposes to use the net proceeds of the issue to finance acquisition of lands, acquisition of land and development rights, construction and development, repayment of loans, and for general corporate purposes, said a statement from the company. The company is engaged in developing residential complexes, commercial complexes, shopping malls, IT parks and bio-IT parks currently. It also plans to foray into hotel and township development. A key focus area of its business has been real estate development on slum rehabilitation land. The company, with its core business in Mumbai plans to expand into Pune, Bangalore, Ahmedabad and other cities. The company recorded a total income of Rs 205.28 crore and net profit after exceptional items at Rs 63.3 crore for the year ended March 31, 2006. J.P. Morgan India Pvt Ltd and Enam Financial Consultants Pvt Ltd are the book running lead managers to the issue.
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