Nitesh Estates hopes to raise Rs 450 cr via IPO

Realty company Nitesh Estates expects to raise up to Rs 450 crore through a public offer, for which the company has filed draft papers with the market regulator SEBI.

The initial public offer (IPO) proceeds would be utilised to acquire joint development rights, for funding the existing subsidiaries and associates and for repayment of loans, among others, according to the draft red herring prospectus filed with the Securities and Exchange Board of India.

With rebound in the country's secondary market, a number of real estate developers, including Lodha Developers Ltd and Emaar MGF Land Ltd, have filed draft papers with the SEBI for their public offer.

The stock market barometer Sensex has risen over 70 per cent so far in this year.

Nitesh Estates plans to enter the capital market with an issue size of Rs 450 crore. According to the prospectus, there will also be a green-shoe option of shares worth Rs 45 crore.

The Bangalore-based company is also considering a pre-IPO placement of up to 26 lakh equity shares or aggregating up to Rs 30 crore with certain investors.

The equity shares offered through the IPO are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.

ICICI Securities, Kotak Mahindra Capital Company and Enam Securities are book running lead managers of the issue.