The Hindu : Business : Omaxe taps capital market

Online edition of India's National Newspaper
Wednesday, Jul 18, 2007
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Business

Omaxe taps capital market

Corporate Reporter

Fixes price band at Rs. 265-310

Plans to enter new locations
52 projects are under development

CHENNAI: Omaxe, a real estate development and construction company, has entered the capital market on Tuesday to mobilise over Rs. 600 crore through the 100 per cent book building process.

Addressing presspersons here on Monday, Sunil Goel, Joint Managing Director, said the company would utilise Rs. 325 crore towards outstanding land payments and acquisition of land for new projects, Rs. 200 crore for repayment of loans and Rs. 150 crore towards development and construction cost of existing projects from the issue proceeds. Mr. Goel said the company, as of March 31 2007, had access to land reserves of about 3,255 acres (including 571 acres belonging to joint ventures and collaborations). It currently had 52 projects under development which include 21 group housing projects, 16 integrated townships, 14 shopping malls and commercial complexes and one hotel.

As part of its growth strategy, the company was planning to expand into new locations with a focus on Tier 2 and Tier 3 cities, he said.

Of the total equity float, about 1.75 crore equity shares of Rs. 10 each are being offered to the public while 2.96 lakh equity shares have been reserved for employees. Moreover, there would be a green shoe option of 17.5 lakh equity shares. The price band has been fixed at Rs. 265-310 per share. The issue closes on July 20.

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