• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Focuses on expanding to tier II and III cities

Paul Noronha

Entering new layout: Mr Rohtas Goel, Chief Managing Director, Omaxe Ltd, with Mr Sunil Goel, Joint MD, at a press conference to announce the company’s IPO in Mumbai on Thursday. –

Our Bureau

Mumbai July 12 Real estate developer and construction company Omaxe Ltd will enter the capital market with an initial public offering of 1,77,96,520 equity shares of Rs 10 each in the price band of Rs 265-310 through a 100 per cent book building process, with a green shoe option.

The issue will constitute 11.20 per cent of the fully diluted post-issue paid up capital of the company assuming the green shoe option is exercised and 10.30 per cent if not exercised. The IPO opens on July 17 and closes on July 20.

The company hopes to raise Rs 551.69 crore on the upper end of the price band and Rs 471.61 crore at the lower end.

Of the total equity float, up to 1.75 crore equity shares will be offered to the public, while the balance of up to 2.96 lakh shares are reserved for the company’s employees to be allotted on a proportionate basis. At least 60 per cent of the net issue will be allotted, on a proportionate basis, to qualified institutional bidders (QIB), of which five per cent will be available to mutual funds only.

The remainder of the QIB portion will be available for allocation on a proportionate basis to all QIB bidders, including mutual funds, subject to bids being received at or above the issue price. Further, not less than 10 per cent will be available for allocation on a proportionate basis to non-institutional bidders and not less than 30 per cent of the net issue for allocation, on a proportionate basis, to retail individual bidders.

Omaxe Ltd is involved in developing residential and commercial real estate, ranging from integrated townships, group housing and retail, and other commercial properties, hotels, IT and biotech parks to special economic zones.

Mr Rohtas Goel, Chairman and Managing Director, said focus was on expanding to the tier II and III cities, which had a population of over 10 lakh.

Mr Arvind Parakh, CEO-corporate strategy and finance, said that as of March 31 the company had 52 current residential and commercial projects comprising 21 group-housing, 16 integrated townships, 14 shopping malls and commercial spaces, and one hotel. These include 38 under development and 14 in various stages of approval for development. The company claims to have a land reserve of 3,255 acres.

Net profit for FY07 was Rs 257.26 crore and Rs 118.81 crore for FY06 and Rs 5.04 crore for the fiscal year 2005.

Of the issue proceeds, the company intends to utilise Rs 325 crore for payment for land and Rs 200 crore for repayment of loans, besides other expenses.

More Stories on : IPOs | Real Estate & Construction

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Lotus Mutual Fund plans to launch gilt, long-term debt funds in 3 months

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line