Tuesday, July 10, 2007

Omaxe IPO to raise Rs550 cr

Real estate developer Omaxe Ltd is expecting to raise about Rs550 crore through its initial public offer (IPO), for which the price band has been fixed at Rs265-310 per share.

Omaxe’s IPO will come close on the heels of successful IPOs of real estate giant DLF and HDIL. The company had received market regulator Sebi’s approval for its IPO on 22 May. It had filed the draft red herring prospectus (DRHP) with Sebi in December last. Omaxe proposes to enter the capital market with a public issue of about 1.78 crore equity shares of Rs10 each through 100% book-building process.

About 1.75 crore equity shares are for the public, while balance 296,000 shares are reserved for eligible employees. Additionally, there would be a green shoe option of 17.5 lakh equity shares.The issue would constitute 11.20% of the fully diluted post-issue paid-up capital of the company if the green shoe option is exercised and 10.30% otherwise.

The company will raise about Rs550 crore at the upper band, much lower from its earlier target of Rs 1,400 crore.

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