Orbit Corp Ltd IPO opens Mar 20,price band fixed at 108-117

Mumbai, Mar 14 (UNI) Orbit Corporation Ltd is entering the capital markets on March 20, with an initial public offering (IPO) of 9,100,000 Equity Shares of Rs ten each for cash between a price band of Rs 108 and Rs 117 per Equity share along with one detachable Warrant Equity Share.

Company MD Mr Pujit Aggarwal told reporters,''It is proposed that each Warrant can be exercised into an equity share commencing from completion of the 18th month up to the completion of the 30th month from from the date of allotment of the Equity Shares and Warrants.'' The Warrant Conversion price will be calculated in the following manner. If the Market Price goes below the issue price, shareholders can exercise their warrants at a 30 per cent discount to the prevailing Market price. If the market price is at or above the issue price, they can encash it at 10 percent discount to the market price.

Meanwhile, Orbit Corporation Executive Chairman Mr Ravi Kiran Aggarwal stated,''The objective of the issue are to finance advances towards the acquisition cost of new projects and the project development costs of the existing projects as well as to invest in wholly owned subsidiaries.'' Along with its subsidiaries, the Company is presently executing II projects under the applicable schemes of redevelopment prescribed under the MHADA Act and DCR and further, it acquired five more properties for development, he said.

It is currently evaluating a number of such potential properties in the Island city, more specifically in G South Mumbai, G North Mumbai and D ward in the city. It proposes to fund the acquisition of 5-6 properties herein to the extent of Rs 50 crore. It also proposes to invest Rs 311.42 crore in its subsidiaries to fund the projects currently developed by them, he added.

''The issue closes for subscription on March 23. The issue will constitute 40.11 per cent of the Equity Share capital of the Company after the exercise of detachable Warrants, assuming full exercise of the detachable Warrants,'' he said.

UNI