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| Two more realty firms join IPO race |
| BS Reporter / Mumbai Oct 01, 2009, 00:42 IST |
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Kumar Builders and Mumbai-based DB Realty to mop up Rs 2,000 crore.
Two more real estate companies have joined the IPO bandwagon with Pune-based Kumar Builders and Mumbai-based DB Realty filing their respective draft red herring prospectus (DRHP) with capital markets regulator Sebi on Wednesday to raise funds worth Rs 2,000 crore, according to bankers involved with the plans.
With this, the total number of real estate companies that have filed their DRHPs with Sebi in the last one week has gone up to seven, firming up plans to raise nearly Rs 13,500 crore from the primary markets. Bankers say most of the companies have plans to launch their IPOs in the next six months.
DB Realty, promoted by Vinod Goenka and Shahid Balwa, will raise Rs 1,500 crore while Kumar Builders, promoted by Lalitkumar Jain, plans to mop up Rs 400-500 crore, bankers said. DB Realty is looking to dilute 10 per cent equity in the issue, for which it has appointed Enam Securities and Kotak Mahindra Capital as bankers.
Three real estate companies — Lodha Developers, Subrata Roy’s Sahara Prime City and Delhi-based Emaar MGF — had each filed a DRHP on Tuesday with Sebi, in order to raise a total Rs 10,000 crore from the primary markets.
Last Friday, Delhi-based developer Ambience Ltd had filed a DRHP with Sebi to raise as much as Rs 1,125 crore through an IPO with a green-shoe (over-allotment) option of Rs 168.75 crore. Godrej Properties, which earlier postponed similar plans, will also launch its Rs 500-crore IPO in the next three months with 9.4 million shares on offer to investors.
“The markets are looking up and investors are showing an interest in good realty companies now. But these companies have to market their IPOs at very competitive prices,” a banker said on condition of anonymity.
Most of the real estate companies are tapping the market to clear their debts and fund further construction activities, the source added.
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