Sobha Developers to foray into capital market

Hyderabad, Nov 21 (UNI) As part of expansion, Sobha Developers Ltd (SDL), a construction company engaged primarily in residential and commercial development, has decided to foray into capital market.

A company spokesman today said SDL would announce an Initial Public Offering (IPO) of 8,893,332 equity shares of Rs 10 each at a price band of Rs 550-Rs 640 per equity share through 100 per cent Book Building Process.

Of the 8,893,332 equity shares in the offing, the company had reserved up to 889,300 equity shares for SDL's permanent employees.

He said at least 60 per cent would be allocated on a proportionate basis to financial institutions and other domestic Qualified Institutional Buyers (QIBs).

About 10 per cent would be available for allocation on a proportionate basis to Non-Institutional Bidders and 30 per cent would be available for allocation on a proportionate basis to Retail Individual Bidders.

Having developed and constructed 21 residential projects in Bangalore, the company, as on September 30, 2006, had land reserves aggregating about 2,747 acre in Bangalore, Mysore, Pune, Chennai, Cochin, Thrissur and Coimbatore, he added.

The IPO would open on November 23 and close on November 29.

UNI DB AJ 1731