Tanuj

New Delhi-based real estate player Omaxe is set to tap primary market via initial public offering (IPO) to mop-up funds to invest in its expansion plans.

Omaxe priced its issue in the range of Rs 265 to Rs 310 a share. The issue opens on July 17 and closes on July 20. The shares of the company will list on both BSE and NSE.

Omaxe primarily intends to deploy the issue proceeds of Rs 6,750.09 million to fund the land acquisition cost, repayment of loans, development & construction cost. The fund will also be utilising for brand building exercise and mergers & acquisitions activity.

The issue is being made through the 100% book building process where upto 50% of the net issue to the public shall be allocated on a proportionate basis to qualified institutional buyers (QIB). A total of 5% of the QIB portion shall be available for mutual funds and the remainder of the QIB portion shall be available for all QIBs, including mutual funds.

Further, atleast 15% of the net issue to the public shall be available for non-institutional bidders and atleast 35% of the net issue to the public shall be available for retail individual bidders. Omaxe is offering its shares at discount based on P/E valuation compared with its peers and industry average. The shares of the company are available at P/E multiple of 16x to 18.7x at floor and cap price respectively, based on the earnings reported for fiscal 2007, as against its peers Ansal Properties and Unitech, which are available at P/E multiple of about 35.9x and 59.4x respectively, while the industry average is 59.1x.

Incorporated in 1989, Omaxe is a real estate development and construction company with operations in 30 cities and 9 states in India. Since the inception of the company, it has completed 120 construction projects. In 2001, Omaxe diversified into the real estate development business with a focus on residential and commercial properties. As of Mar. 31, 2007 Omaxe has completed 8 residential projects covering nearly 5.13 million sq. ft. of area. Omaxe holds 3,255 acres of land reserve including joint ventures and collaborations as of Mar 31, 2007.

Source: myiris.com
Date: 17/07/07

Tanuj

New Delhi-based real estate player, Omaxe - IPO (initial public offering) received over subscription of 3.14 times on second day, Jul. 18, 2007 (5 p.m.), led by contribution of qualified institutional investors and non institutional investors.

The IPO received 55.97 million bids as against issue size of 17.79 million shares. A total of 1.92 million bids were received at cut off price. Omaxe priced its issue in the range of Rs 265 to Rs 310 a share and the issue closes on July 20. The shares of the company will list on both BSE and NSE.

Omaxe, which commenced operations in 1989, is engaged in real estate development and construction with operations in 30 cities and 9 states in India. Since the inception of the company, it has completed 120 construction projects.

In 2001, Omaxe diversified into the real estate development business with a focus on residential and commercial properties. As of Mar. 31, 2007 Omaxe has completed 8 residential projects covering nearly 5.13 million sq. ft. of area. Omaxe holds 3,255 acres of land reserve including joint ventures and collaborations as of Mar. 31, 2007.

Source: myiris.com
Date: 19/07/07

manpreet

Indian real estate developer Omaxe Limited has raised Rs5.5 billion ($137 million) from its domestic initial public offering after solid demand prompted it to fix the price at the top of the range.

According to a source close to the deal, more than 460,000 orders were submitted during the four-day bookbuilding, which coincided with India’s benchmark Sensex index hitting a series of new highs. The demand came from global investors, hedge funds, banks, financial institutions and retail investors and the total deal ended up 68.3 times subscribed.

The institutional tranche, which accounted for 60% of the net issue (excluding the 296,520 shares set aside for company employees) was 95.3 times subscribed and the 10% non-institutional tranche was 81.2 times covered. The response to the 30% retail portion was less overwhelming, leaving it 13.9 times subscribed.

Omaxe priced its offering at Rs310 per share after marketing it within a range of Rs265 to Rs310. The final price values the company at 18.7 times its fiscal 2007 earnings. The valuations of Indian property developers vary widely, however, and among its closest comparables India-listed Ansal Housing and Ansal Properties trade at fiscal 2007 price-to-earnings multiples of 13.2 and 35.9 respectively, according to Omaxe’s prospectus.


Source: financeasia.com

John

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