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Embassy Property Developments plans Rs 2400 crore IPO

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A real estate firm Embassy Property Developments is planning a public issue of Rs 2400 crore for financing its various realty projects. It has filed Draft Red Herring Prospectus (DRHP) with the market regulator SEBI.

The company is also going to consider a pre-IPO placement of Rs 1175 crore worth of equity shares.

It has entered into a joint venture with Azikaf Sdn Bhd, a member of the Emkay Group, of Malaysia for the development of MKN Embassy TechZone, a business park being developed in Cyberjaya, Malaysia, which is first real estate development outside of India.

The company is currently developing 49.65 million sq ft of developable area. This developable area includes 63 domestic and international commercial projects comprising a developable area of 36.95 million sq ft, eight residential projects comprising a developable area of 10.56 million sq ft, three retail projects comprising a developable area of 0.89 million sq ft and two hospitality projects comprising a developable area of 1.25 million sq ft.

As at June 30, 2010, the developable area of company land reserves aggregated into approximately 136.59 million sq ft.

The issue proceeds will be used for financing the construction and development of ongoing projects; investment in certain subsidiaries and associates for the construction and development of ongoing/proposed projects; paying certain loans and investment in certain subsidiaries and associates for prepayment and/or repayment of their loans.

For the period of 11 months ended on February 2010, it has reported loss of Rs 3.35 crore and total income of Rs 382.86 crore.

The book running lead managers to the issue are UBS Securities India Private Limited, Nomura Financial Advisory and Securities (India) Pvt Ltd, Citigroup Global Markets India Pvt Ltd and Edelweiss Capital Ltd. Karvy Computershare Pvt Ltd is the registrar.

Source: Moneycontrol.com