Nitesh Estates' Rs 405-cr IPO sold 16% on Day 1

The Rs 405-crore initial public offer of realty firm Nitesh Estates got subscribed 16 per cent at the end of the first day of issue today, with most of the bids coming from institutional investors.

The issue received bids for 1.04 crore shares against 6.41 crore equities on offer for public, according to the data available with the National Stock Exchange.

The Bangalore-based real estate developer has entered the capital market with shares in price band of Rs 54-56 a piece. The IPO closes on April 27.

At the end of first day, the IPO got subscribed 37 per cent in the portion reserved for qualified institutional buyers.

Yesterday, the company roped in four anchor investors -- Halbis Capital, SBI Mutual Fund, Nomura Japan and HDFC Mutual Funds for a total commitment of Rs 60 crore.

The company plans to utilise the IPO proceeds to fund its existing subsidiaries and the associate company for repayment of loans, redemption of debentures and for general corporate purposes.

Incorporated in 2004, Nitesh Estates is primarily engaged in development of residential projects in Bengalore. It is in the process of diversifying into development of shopping malls and is expanding its reach to Chennai, Goa and Hyderabad.

ICICI Securities, Enam Securities, Kotak Mahindra Capital Company and JM Financial Consultants are the book running lead managers for the issue.

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