Hong Kong: Indian developer Omaxe Ltd. plans to raise $300 million to $400 million (Rs1,633 crore )through a domestic IPO in July, according to a term sheet distributed on 13 June, testing investor demand for Indian property companies.
Omaxe’s sale of nearly 18 million shares will come on the heels of rival developer DLF Ltd., which is raising $2.4 billion, India’s largest IPO ever. It was fully subscribed a day after it opened to institutional investors on 11 June.
Omaxe filed for an IPO in December with a fund-raising target of $339 million, but media reports earlier this year suggested the deal would be closer to $200 million because of weak Indian stock markets and concern over domestic land valuations.
But Sensex has climbed back to near-record territory, rising nearly 15% since hitting a recent bottom in March.
Omaxe Chief Executive Arvind Parakh, speaking to Reuters in April, said the company would grow faster than the 30% annual rate expected for India’s $15 billion property development industry.
Omaxe had sales of about $400 million in 2006, and the company is selling 10.3% of its equity, with a greenshoe over allotment option of 1.75 million shares, the term sheet said.
Citigroup , Merrill Lynch and UBS are joint bookrunners for the deal, the term sheet said.
Investor allocations will be on 16 July and the company will list on 2 August, with investor education sessions planned for Mumbai, Singapore and Hong Kong later this month.