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Friday, August 18, 2006

Orbit Corporation files DRHP with Sebi

Orbit Corporation, a real estate construction and development company with a primary focus on redevelopment of existing properties, has filed its draft red herring prospectus, DRHP with the Securities & Exchanges Board of India, Sebi as a first step towards entering the capital markets with its initial public offering, as per press release.

The company proposes to offer 91 lakh equity shares of Rs 10 each for cash at a premium to be decided through a 100% book-building process, along with one detachable warrant per equity share, which may be converted into the equity share of the company at a later date, in accordance with the DRHP.

The issue of equity shares will constitute 25.09% of the fully diluted post-issue equity capital prior to the conversion of the detachable warrants, and 40.11%, assuming full conversion of the detachable warrants.

In accordance with the Sebi guidelines, at least of 50% of the offer is reserved for allotment to qualified institutional buyers, upto 15% is available for allotment to non-institutional investors on a proportionate basis and the balance, upto 35% will be available for allotment to retail investors.

The company is currently executing 12 redevelopment projects in the Island City of Mumbai, which is in line with its conscious strategy to focus on redevelopment of dilapidated buildings in the Island City of Mumbai. Redevelopment of dilapidated buildings has evolved in Mumbai due to a variety of reasons over the last few years.

The sole book running lead manager to the issue is Edelweiss Capital.

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