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Omaxe to raise over Rs 600 crore from IPO

Press Trust of India     July 16, 2007

Real estate major Omaxe is tapping the capital market on Tuesday to mop up more than Rs 600 crore to acquire land, repay loan and meet construction cost.

The company would issue about 1.78 crore shares of Rs 10 each through 100 per cent book building process at a price band of Rs 265-310 per share, the company's Joint Managing Director Sunil Goel said at a press conference on Monday.

The issue would close on July 20.

The company had a land bank of 3,225 acre and had 52 projects on hand, including developing 16 integrated townships, he said.

The company, which has a presence in 30 cities and nine states, intends to utilise Rs 325 crore for payments related to land, Rs 200 crore for repayment of loan and Rs 150 crore to meet construction cost from the issue proceeds.

Of the total issue, 1.75 crore equity shares are for the public, while 2.96 lakh shares are reserved for employees. Moreover, there would be a green shoe option of 17.5 lakh equity shares.

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