Puravankara tumbles after fixing floor price for share sale at discount

The announcement was made after market hours on Tuesday, 21 May 2013.

Meanwhile, the BSE Sensex was up 68.15 points, or 0.34%, to 20,179.76.

On BSE, 27,000 shares were traded in the counter as against an average daily volume of 1.24 lakh shares in the past one quarter.

The stock hit a high of Rs 92.10 and a low of Rs 87 so far during the day. The stock had hit a 52-week high of Rs 122.80 on 18 January 2013. The stock had hit a 52-week low of Rs 55.30 on 4 June 2012.

The stock had underperformed the market over the past one month till 21 May 2013, sliding 6.62% compared with the Sensex's 5.76% rise. The scrip had also underperformed the market in past one quarter, falling 9.01% as against Sensex's 4.07% rise.

The small-cap real estate developer has an equity capital of Rs 106.74 crore. Face value per share is Rs 5.

Puravankara Projects said it fixed the floor price of Rs 80 per equity share for the proposed issuance of equity shares through the institutional placement programme (IPP).

The floor price of Rs 80 per share is at 16.62% discount to the stock's closing price of Rs 95.95 on Tuesday, 21 May 2013. The floor price is 11.21% discount to the ruling market price.

The company proposes to issue up to 2.15 crore equity shares to institutional investors on Thursday, 23 May 2013. It has fixed the price band of Rs 80 to Rs 85 per share for the IPP.

In case of oversubscription, the company has a right to allot an additional up to 21.56 lakh shares to eligible qualified institutional buyers (QIB).

The company is launching the IPP to meet Sebi's guidelines of minimum 25% public shareholding by 30 June 2013 for private sector listed companies. As on 31 March 2013, the promoters held 89.96% stake in the company.

Puravankara Projects' consolidated net profit jumped 71% to Rs 79 crore on 79% growth in revenue to Rs 416 crore in Q4 March 2013 over Q4 March 2012.

Puravankara Projects is one of the leading real estate companies in India, with significant presence in Bangalore, Kochi, Chennai, Coimbatore, Hyderabad, Mysore, and overseas in the United Arab Emirates, Kingdom of Saudi Arabia, and Sri Lanka.

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