Omaxe to raise Rs 600 crore through IPO

New Delhi, July 13 (UNI) Real estate development and construction company Omaxe Ltd today said it plans to raise around Rs 600 crore through initial public offer (IPO) of upto 1,77,96,520 equity shares of Rs 10 each at price band fixed between Rs 265 to Rs 310 per share.

The issue will open for subscription on July 17 and closes on July 20.

''The objective of the issue is to pay the debt, carrying out construction work and acquisition of land,'' said company Chairman and Managing Director Rohtas Goel.

The company plans to use Rs 325 crore for payments related to land, Rs 200 crore for repayment of loans and Rs 150 crore for development and construction works.

Of the total equity float, up to 1,75,00,000 equity shares are for the public while the balance 2,96,520 shares are reserved for eligible employees of the company.

In addition, there would be a green shoe option of 17.5 lakh equity shares to be offered via Guild Builders Private Ltd, one of the promoters.

The issue would constitute 11.20 per cent of the fully diluted post-issue paid up capital of the company assuming the green shoe option is exercised and shall constitute 10.30 per cent of the fully diluted post-issue paid up capital of the company if the green shoe option is not exercised.

The company has appointed DSP Merrill Lynch Ltd, Citigroup Global Markets India Pvt Ltd and UBS Securities India Pvt Ltd as the Global Coordinators and Joint Book Running Lead Managers.

JM Morgan Stanley Pvt Ltd is the Book Running Lead Manager and ICICI Securities Ltd is the Co-Book Running Lead Manager.

UNI