Omaxe fixes issue price at Rs 310
Real estate firm Omaxe, which received a robust response for its initial public offer, has fixed the issue price at Rs 310 a share - upper end of the price band.
The issue price of Rs 310 would take the total proceeds raised by the firm to Rs 551.69 cr, excluding a green-shoe option. The issue price has been fixed at the upper end of the price band of Rs 265-310 a share, the company said in a statement.
"We are taking the advice of merchant bankers of whether to exercise green option or not. In all probability the option will be exercised," company CEO Arvind Parakh said. After including the green shoe option of 17.50 lakh equity shares to the total issue, the company can raise up to Rs 605.94 cr.
The IPO of the construction firm consisting of 1,77,96,520 equity shares got subscribed by over 68 times. The portion reserved for qualified institutional buyers received an overwhelming response getting subscribed 95 times, while the non-institutional buyers part witnessed a demand for over 80 times. Retail investors portion was oversubscribed around 13 times.
The issue would constitute 11.20 per cent of the fully diluted post-issue paid-up capital of the company, if the green shoe option is exercised, and 10.30 per cent if the option is not exercised. The proceeds of the issue would be utilised for payments related to land, repayment of loan and to fund the development and construction costs of some of the company's projects.
New Delhi-based Omaxe has a land bank of over 3,000 acre and at present 47 projects are under development.
Source: zeenews.com
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