Tanuj

Real estate developer Omaxe Ltd plans to raise about Rs 550 crore through its initial public offering (IPO). The price band has been fixed at Rs 265-310 per share for the issue.

The public offer will open on July 17 and close on July 20. Omaxe’s issue comes close on the heels of successful IPOs of real estate giant DLF and HDIL. The company received Sebi’s approval for its IPO on May 22. It had filed the draft red herring prospectus with the regulator in December. Omaxe proposes to enter the capital market with a public issue of about 1.78 crore equity shares of Rs 10 each through a 100 per cent book-building process.

About 1.75 crore equity shares are for the public, while the balance 2.96 lakh shares will be reserved for eligible employees. There will also be a greenshoe option of 17.5 lakh equity shares. The issue will constitute 11.20 per cent of the fully diluted post-issue paid-up capital of the company, if the greenshoe option is exercised and 10.30 per cent, if the option is not exercised.
The company will raise about Rs 550 crore at the upper band, much lower than its earlier target of Rs 1,400 crore. Omaxe has projects and land reserves in 30 cities and nine states. About Rs 500 crore of the proceeds will be used for payments related to land, Rs 236 crore towards repayment of loans and Rs 699 crore to fund development and construction costs.

New Delhi-based Omaxe has a land bank of over 3,000 acres and has 47 projects are under development. DSP Merrill Lynch, Citigroup Global Markets India and UBS Securities India are the global coordinators and joint book-running lead managers to the issue.

Source: The Telegraph
Date: 10/7/07

varun

Hi thrs update in the news..

New Delhi-based real estate developer Omaxe today announced its Initial Public Offer (IPO) of 1.78 crore equity shares to raise about Rs 675 crore from the capital market. The shares will be of Rs 10 each for cash at a price to be decided through a 100 per cent book building process. The company has fixed the price band between Rs 265 and Rs 310.

Addresing a press conference, Omaxe Chairman and Managing Director Rohtas Goel said the amount is being raised for the proposed expansion plans, including acqusition of land and repayment of outstanding loans on the huge land-bank the group owns. This is the third major public offering by any major real estate developers after successful IPOs by DLF and HDIL in the recent past.

Mr Arvind Parakh, Omaxe CEO (Corporate Strategy and Finance), said the company would use the IPO proceeds for making repayment of loans of Rs 200 crore, proposed acquisitions at Rs 325 crore and outstanding expenses of Rs 150 crore. According to the issue details, of the proposed offering of 1.78 crore equity shares, the company has reserved 296,50 equity shares for its employees.

The issue constitutes 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. Omaxe currently has operations in 30 cities and nine states in India, mostly spread in the northern parts of the country.

The real estate developer currently has a land bank of 3255 acres and is involved in construction activity of parallel townships, commercial complexes, and aims to make its presence across the country. The company has also received centre's nod to set up Special Economic Zone (SEZ) in Rajasthan, Mr Goel informed. The shares of the company will be listed on the Bombay Stock Exchange and National Stock Exchange (NSE). The issue opens on July 17 and closes on July 20.

Source: deepikaglobal.com
Date: 13/07/07