Parsvnath Developers Ltd to come out with IPO

The IPO of Parsvnath Developers Ltd opens on November 6, 206. The company is issuing 33,238,000 equity shares of Rs.10 each at a price band of Rs.250 to Rs.300 per share to be decided through 100% Book Building process. The issue also has a green shoe option of up to 30,87,800 equity shares to be offered by Parasnath and Associates Pvt Ltd, one of the promoters at the issue price. The issue and the green shoe option if exercised in full, will aggregate 36,325,800 equity shares.

The issue comprises a net issue to the public of 33,038,000 equity shares of Rs.10 each and a reservation for eligible employees of up to 200,000 equity shares of Rs.10 each at the issue price. The issue will constitute 18.30% of the fully diluted post issue paid-up equity capital of the company assuming that the green shoe option is not exercised and 19.67% assuming that the green shoe option is exercised in full.

The issue opens on November 6, 2006 and closes on November 10, 2006. The minimum order quantiy is 20 shares and further lot should also be in multiples of 20 shares.

The book running lead managers to the issue are JM Morgan Stanley Private Ltd, Enam Financial Consultants Private Limited, DSP Merrill Lynch Limited. The registrar to the issue is Intime Spectrum Registry Limited.

Parsvnath Developers Ltd is one of the leading real estate development companies in India with operations in 41 cities and 14 states of India. As of October 15, 2006 the company directly owned or held development rights for an estimated 108.64 million square feet of saleable area.

The company is associated with the real estate business since incorporation in 1990 and the Promoters have been associated with the real estate sector for more than two decades. The business was commenced as a marketing company for real estate projects. In 1990, the company began constructing residential real estate projects and now most of the projects are constructed internally by the company itself.

It has a diversified portfolio of real estate development projects. Presently the company has acquired land or development rights in connection with the development of 20 integrated townships, 27 commercial complexes including shopping malls, multiplexes, office space and a complete metro station and 25 residential projects. It also intends to construct 14 hotels and four information technology parks on commercial land acquired by it or in respect of which it has development rights. In addition, it has completed 17 projects including nine housing projects and eight commercial complexes. Further, it has obtained in principle approvals from GoI for the development of nine SEZ projects.

Company Website: www.parsvnath.com

Source : Equity Bulls

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