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Tuesday, December 12, 2006

Omaxe plans to raise Rs 15bn via IPO

After the good performance of Parsvnath Developers in the capital market, Omaxe is planning to raise Rs 10-15 billion with an initial public offering, IPO, reports Business Standard.

The company has plans to file the prospectus for its IPO with the Securities & Exchange Board of India, Sebi in the next 10 days.

Omaxe seems to have reversed its priorities of raising USD 100 million of private equity followed by an IPO. The company is keen on its expansion with the IPO.

The burgeoning appetite for realty stocks in the country is evident from recent reports of real estate companies raising over USD 4 billion by March 2007 from listings in India and overseas.

Arvind Parakh, Omaxe`s chief executive officer said, `In the last two months we have raised over Rs 3 billion as debt from banks and financial institutions. We are also looking to raise onshore and offshore debt through structured instruments, for which talks are on.’

He added that a combination of debt and equity would tie up the company’s long term expansion plans.

Besides, Omaxe will also be looking at project specific joint ventures with foreign partners. Recently, it forged a 50:50 joint venture with Azorim International, an Israeli company, for a 20-acre township near Surajkund, Haryana.

Based on the current market rates, Azorim has paid the first instalment of Rs 1,212 million for its share in the land that Omaxe had purchased earlier.

The starting price for apartments, penthouses and bungalows - the size of which will vary between 4,000 and 8,000 square feet is Rs 15 million. The entire cost of the project is likely to be Rs 8500-9500 million.

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