Omaxe Ltd, the Delhi-based property developer that plans to kick off the road show for its initial public offering in a week, may have to price its shares lower than rival DLF Ltd’s share price for it to attract investors, say analysts.
While Omaxe has not yet decided on the price band for the issue, a senior company official familiar with the offer, speaking on the condition he wouldn’t be named, said the price band would be below Rs500 a share, the lower end of the DLF band.
Omaxe is currently consulting with its merchant bankers to arrive at a price band. Mint could not independently verify the Rs500-a-share number.Omaxe’s offer of 17.8 million shares pales in comparison with DLF’s 175 million shares, which is the largest share sale to hit the Indian market. The DLF offer got Rs9,187 crore from the market at a price of Rs525 per share. At Rs500, Omaxe could generate Rs890 crore.
Read more in The Livemint article.
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