Date:22/06/2007 URL: http://www.thehindubusinessline.com/2007/06/22/stories/2007062204881500.htm

Back Housing Development issue to hit market on June 28

Our Bureau

Plans to raise Rs 1,485 cr through IPO

COVERING NEW GROUND: Mr Rakesh Kumar Wadhawan (right), Chairman, HDIL, with Mr Sarang Wadhawan, MD, at a press conference to announce the company's IPO in Mumbai on Thursday - Paul Noronha

Mumbai June 21 Realty major Housing Development and Infrastructure Ltd (HDIL), a Wadhawan Group company, is set to tap the capital market on June 28 with an initial public offer of 2.97 crore shares with a face value of Rs 10 each. The price band for the 100 per cent book building issue has been set at Rs 430-Rs 500 per equity.

At the lower end of the price band the company will raise Rs 1,277 crore and on the upper end it would be Rs 1,485 crore. The company has a green shoe (a provision to sell additional share) option of up to 44.55 lakh equity shares.

The public issue constitutes 13.86 per cent of the fully diluted post issue paid-up capital of the company and it will stand at 15.65 per cent if the green shoe option is exercised fully. It has reserved 6 lakh equity shares for eligible employees.

In financial year ended March 31, 2007, HDIL registered a net profit of Rs 548 crore against Rs 117 crore last year and it was Rs 14 crore in FY-05.

The company has land reserves of 112.1 million square feet (msf), of which, 45.5 msf of saleable area is set for ongoing projects and approximately 66.6 msf are under the drawing board. About 82 per cent of the total land reserves are in Mumbai Metropolitan Region.

"Slum rehabilitation scheme project makes up for nearly 15 per cent of our total business and 40 per cent of total projects undertaken," said Mr Sarang Wadhawan, Managing Director, HDIL.

The company is planning to bid for airport modernisation across the country and Maharashtra government's Dharavi makeover project in Mumbai. The company is also working on projects in Hyderabad and Kochi.

"We expect housing industry to grow at 33 per cent per annum and become a $50 billion market by 2008," said Mr Rakesh Kumar Wadhawan, chairman, HDIL.

Kotak Mahindra Capital Co Ltd and Enam Financial Consultants Pvt Ltd are the global co-ordinators and the book running lead managers while ICICI Securities Ltd is the co-book running lead managers.