Puravankara to enter capital market

Bangalore, Jan 5 (UNI) Puravankara Projects Limited, a leading real estate development company, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to enter the capital market with an initial public offering of 21,467,610 equity shares of Rs five each.

The issue would be made through a 100 per cent book building process in accordance with SEBI (Disclosure and Investor Protection) Guidelines, 2000. The issue would constitute 10.05 per cent of the post-issue capital of the company, a company release here said today.

The proceeds of the issue would be used to acquire lands in Bangalore and Chennai, aggregating 76.23 million sqft at a total cost of Rs 7,334 million, repayment of loans of Rs 2,899 million and for general corporate purposes, the release said.

Of the issue, 60 per cent would be reserved for allotment to Qualified Institutional Buyers, of which five per cent would be reserved for alloment to mutual funds. Further, up to ten per cent of the issue would be allotted to non-institutional investors and the balance up to 30 per cent would be allotted to retail investors, the release added.

UNI