The Hindu Business Line : Lok Housing up on placement buzz

The market buzz around Lok Housing & Constructions suggests that the company is preparing to place a significant amount of shares to certain institutional investors at a substantial premium to the current market price.

Attempts by Business Line to obtain an official word did not succeed. One of the oldest realty companies in the country, Lok Housing has been raising funds through preferential allotments. Latest among such allotment plans was disclosed early this month for Bennett Coleman (7.62-lakh shares at Rs 196.80 per share of Rs 10 each). In the last one year, the company has raised funds through conversion of warrants, privately placed earlier to non-promoter investors.

As a result of such allotments, the equity capital base of the company had increased to Rs 17 crore and the non-promoter holding moved up to 84.45 per cent at the end of September quarter this year from Rs 11.39 crore and 67.44 per cent as on September 30, 2006. Lok Housing has a land bank, estimated to be Rs 4,000 crore, spread across Mumbai such as Khar, Bandra, Kalyan, Andheri, Mulund, Virar and Turbhe.

If the market talk is right, then the company is looking towards a placement price of around Rs 550 per share. On Tuesday, the stock closed in the green at Rs 311.90 as 5.27-lakh shares changed hands on the BSE.

Jayanta Mallick

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