Parsvnath files draft Red Herring prospectus

New Delhi, Mar 17 (UNI) Delhi-based Parsvnath Developers Ltd (PDL) today filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India (SEBI) for a public issue of upto 3,32,38,000 equity shares.

Although the company chose to keep mum on how much is it looking to raise through the issue, industry sources reveal that the company plans to set up townships, resorts and IT parks across South India and the money from the from the issue will be used to fund its expansion plans.

Of the total equity float, upto 330,38,000 equity shares are for the public, while the balance upto 2,00,000 shares are reserved for eligible employees of the company.

The issue would constitute 25.15 per cent of the fully diluted post issue paid up capital of the company, while the net offer to the public would constitute 25 per cent of the fully diluted post issue paid up capital of Parsvnath Developers Ltd.

While the face value of the equity shares is Rs 10 each, the pricing of the issue is to be determined through 100 per cent book building process. A minimum of 50 per cent of the net offer to the public shall be allocated to Qualified Institutional Buyers (QIBs), and upto 35 per cent shall be available for allocation on a proportionate basis to the retail bidders.

The company has appointed Enam Financial Consultants Pvt Ltd, J M Morgan Stanley and DSP Merrill Lynch as the Lead Managers.

PDL is currently developing 12 integrated townships, 19 residential projects, 20 commercial complexes including shopping malls and multiplexes and one hotel.

In addition, it has completed 14 projects including six housing projects and eight commercial complexes.

The company is also the single biggest real-estate entity to have bagged commercial space from Delhi metro.

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