Ambience plans IPO by Feb next yr; to raise up to Rs 1,293 cr

Realty firm Ambience today said it plans to launch its proposed initial public offer (IPO) by February next year to raise up to Rs 1,293 crore.

"Sebi approval is valid till February 2011. Our endeavour will be to launch the public issue before February, if market conditions are conducive," Ambience Group Chairman Raj Singh Gehlot told PTI.

The company had filed the draft red herring prospectus (DRHP) in September last year and received approval from the market regulator SEBI in February this year.

Ambience plans to dilute between 10 and 15 per cent to raise nearly Rs 1,300 crore through the maiden public offer.

It would utilise about Rs 475 crore to make part repayment of Rs 2,500 crore debt, while another Rs 470 crore would be deployed for construction of existing and future projects.

About Rs 150 crore will be used for paying external development charges for some projects awarded by the Haryana government.

The Delhi-based firm has a land bank of 800 acres, of which about 100 acres are under development. It plans to develop the remaining land over the next 3-4 years.