Sobha Developers to raise Rs 600 cr via IPO

New Delhi, Nov 19 (UNI) Bangalore-based Sobha Developers Ltd (SDL) plans to raise Rs 600 crore through an initial public offering (IPO) to finance land acquisition and fund its ongoing projects.

It will enter the capital market on November 23 with 88,93,332 equity shares of Rs 10 each through a 100 per cent book building process.

The price band for the IPO, which will close on November 29, has been fixed between Rs 550-640 per share. A part of of the proceeds would be used to clear debts.

''We have 10 million sq ft of residential projects to be executed over a period of next one and half years to two years.

We also have Rs 549 crore worth of contractual projects order book as on date,'' company's sales and marketing director Jackbastian K Nazareth told reporters here.

The issue constitutes 12.20 per cent of the fully diluted post equity capital of SDL while the net issue to the public constitutes 10.98 per cent of it.

Out of the net issue, at least 60 per cent would be allocated on a proportionate basis to FIIs and domestic qualified institutional buyers (QIBs).

About 10 per cent of the total issue will be available for allocation on a proportionate basis to non-institutional bidders and 30 per cent will be available for allocation on a proportionate basis to retail individual bidders.

SDL has land reserves of about 2,747 acres in Bangalore, Mysore, Pune, Chennai, Kochi, Thrissur and Coimbatore, Mr Nazareth added.

The backward integration being the core strength of the company, SDL has one-stop shop solution, from civil contracting ability to doing mechanical, electrical and plumbing related activities supported by the interior factories doing interior work and supported by metal and glazing factories.

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