HDIL to raise Rs 1500 cr through IPO

New Delhi, June 26: Real estate developer Housing Development and Infrastructure Ltd (HDIL) today said it will raise about Rs 1,500 crore through issue of 29.7 million equity shares of Rs 10 each at a price band of Rs 430 to Rs 500 per equity share.

The initial public offer (IPO) opens on June 28, 2007 and closes on June 3, 2007 through a 100 per cent book building method.

''The company proposed to utilise the net proceeds of the issue in part to finance the acquisition of land and land development rights for its ongoing and planned projects and construction of ongoing projects,'' company Chief Financial Officer Prashant Chaturvedi told reporters here.

The company plans to allocate Rs 128 crore for acquisition of land and payment of balances and Rs 1,198 crore for the construction purposes, he added.

There will also be a green shoe portion of up to 4,455,000 equity shares.

The net issue constitutes 13.96 per cent of the fully diluted post issue paid-up capital of the company and it will stand at 15.65 per cent if the green shoe option is exercised in full.

The issue comprises a reservation of up to 600,000 equity shares for the subscription by employees.

At least 60 per cent of net issue will be allocated on a proportionate basis to QIBs, out of which five per cent will be available for allocation to Non-Institutional Bidders and 30 per cent to Retail Individual Bidders, said Mr Chaturvedi.

Kotak Mahindra Capital Company Ltd and Enam Financial Consultants Private Ltd are the global co-ordinators and the BRLMs and ICICI Securities Ltd is the Co-BRLM for the issue, added Mr Chaturvedi.

As on March 31, 2007, the company has around 112.1 million square feet of land reserves, which included around 45.5 million square feet of saleable area for its ongoing projects and 66.6 million square feet of saleable area for its planned projects.

''Approximately 92.8 million square feet or 82.8 per cent of our Land Reserves are in Mumbai Metropolitan Region MMR,'' said Mr Chaturvedi.

UNI