IVR Prime hits capital market with Rs 849 cr IPO

IVR Prime hits capital market with Rs 849 cr IPO
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First Published: Mon, Jul 23 2007. 06 20 PM IST
Updated: Mon, Jul 23 2007. 06 20 PM IST
PTI
New Delhi: After the public issues of DLF, Omaxe and HDIL, another real estate firm has entered the capital market with its IPO. IVR Prime Urban Developers is raise up to Rs849 crore, to finance some of its projects and to repay loans.
The Hyderabad-based firm, a subsidiary of IVRCL Infrastructures and Projects, proposes to issue 14.15 million equity shares of Rs10 each through 100% book-building process.
The price band for the issue has been fixed at Rs510-600 a share. At the lower end, the company would raise Rs721 crore.
“The company’s focus would be on affordable homes,” IVR’s managing director, E. Sunil Reddy told reporters here.
The company is developing four projects in Chennai and Visakhapatnam to provide homes in the mid-range of Rs18-20 lakh, Reddy said, adding it intends to replicate the model in other parts of India as well.
The company will target employees with monthly salaries in the range of Rs25,000-40,000, he said.
IVR has a land reserve of 2,479 acres that translates into development potential of 75.45 million sq ft in Hyderabad, Visakhapatnam, Chennai, Bangalore, Pune and Noida.
Of the total issue proceeds, the company intends to deploy Rs334.7 crore to meet development and construction cost of its IT Park and mall at Gochibowli (Hyderabad), and another Rs57.3 crore for a project in Bangalore.
IVR proposes to use up to Rs 147.1 crore and Rs 41.9 crore for repaying its loan to parent company and Karnataka Bank respectively. Besides, it would use Rs85.7 crore to pay development right costs to IVRCL.
The issue, which closes on July 26, constitutes 22.06 of the fully diluted post-issue paid-up capital of the company. Enam Financial and Kotak Mahindra Capital are the book running lead managers to the issue.
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First Published: Mon, Jul 23 2007. 06 20 PM IST