Lodha Developers to launch IPO

Lodha Developers to launch IPO
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First Published: Wed, Aug 05 2009. 10 48 PM IST
Updated: Wed, Aug 05 2009. 10 48 PM IST
Mumbai: Mumbai-based realty firm Lodha Developers is set to launch an initial public offering (IPO) to raise between Rs2,000 and Rs2,500 crore, people familiar with the development said.
The firm has appointed JPMorgan Chase and Co. and Enam Securities Pvt. Ltd as investment bankers to the issue and could be considering a third banker as well, the people said on condition of anonymity. Amarchand and Mangaldas is likely to act as legal adviser, they added.
The realty firm is looking to sell 12-13% stake through the IPO. If market conditions remain favourable, the realtor would file a red herring prospectus with the capital market regulator in the next four to six weeks, the people said.
This IPO could give Deutsche Bank AG an exit for its investment of $450 million in the firm, they said. After the IPO, Deutsche may look to exit and the remaining money could be utilized towards repaying debt and business expansion.
The company has around Rs700 crore in debt, the people said. It has 4,500 acres of land, of which 25 million sq. ft is under construction.
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First Published: Wed, Aug 05 2009. 10 48 PM IST