Akruti Nirman Ltd IPO opens Jan 15, Price band fixed at Rs 475-540

Mumbai, Jan 12 (UNI) Akruti Nirman Ltd, a real estate development company engaged in the primary business of development of commercial and residential properties, proposes to enter the capital market on January 15 with a public issue 6,700,000 equity shares of Rs ten each through 100 per cent book building process.

The issue closes on January 19, 2007 and the price band has been fixed at Rs 475 to Rs 540. The issue will constitute 10.04 per cent of the post issue capital of the company. The equity shares are perposed to be listed on the BSE and NSE.

Company's Managing Director Mr Vyomesh M Shah told mediapersons ''Akruti Nirman proposes to utilize the net proceeds of the issue to finance acquisition of lands and rights in lands and development rights, finance the construction and development costs for some of its projects under development, repay certain loans of the company and fund expenditure for general corporate purposes.'' ''In its new retail business line, the company is currently developing its first six shopping malls which contain space for retail units, food courts, banquet halls and restaurants and in which it intends to lease peace space to retailers upon their completion,'' said Mr Shah.

''A key focus area of its business has been real development on slum rehabilitation land, pursuant to the slum rehabilitation scheme initiated by the Government of Maharashtra (GoM) in 1992, whereby in return construction of new residential buildings for former slum dwellers, the GoM grants it either the right to develop a proportion for former slum land for own purposes, or transferable development rights (TDRs), which permits it to develop land in certain parts of Mumbai that are outside the relevant slum ares,'' added Mr Shah.

UNI