Omaxe to launch Rs 1,500cr IPO
Omaxe Developers is planning to enter the capital market in the first quarter of 2007 to raise around Rs 1,500 crore through an initial public offering (IPO) of its equity shares. The company has filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India (Sebi).
Omaxe has proposed to sell 1.78 crore equity shares. Of the total equity float,
- 1.75 crore equity shares are for public,
- 2.97 lakh shares are reserved for eligible employees of the company.
- Additionally, there will also be a green shoe option of 17.50 lakh equity shares.
The pricing of the issue would be determined through 100% book building process.
- A minimum of 60% of the net offer will be allocated to Qualified Institutional Buyers (QIBs),
- up to 30 % would be available for allocation on a proportionate basis to the retail bidders and
- 10% shall be available for allocation on a proportionate basis to high net worth individuals group.
According to market sources, the issue would be priced around Rs 850 per share. At this price, the valuation of the firm would be around Rs 13,500 crore.
With Omaxe developing projects in 30 cities in eight states and has large land banks, it is expected that Omaxe would get good valuation. The equity shares are proposed to be listed on BSE and NSE.