HDIL fixes price band for IPO at Rs 430-500

Housing Development and Infrastructure on Tuesday said it proposes to raise up to Rs 1,485 crore (Rs 14.85 billion) through an Initial Pubic Offering to part finance land acquisition and development of its ongoing projects.

The company has fixed a price band of Rs 430-500 per share for its 2.97-crore issue. The 100 per cent book-building issue opens on June 28 and closes on July 3. "Of the IPO proceed, the company will utilise Rs 1,198 crore (Rs 11.98 billion) for construction and development of the ongoing projects and Rs 128 crore (Rs 1.28 billion) for land acquisition," HDIL Director Ashok Kumar Gupta told reporters in New Delhi.

The HDIL issue comprises reservation of up to 6 lakh shares for employees. The issue also has a green-shoe option of up to 45 lakh shares. Assuming the green-shoe option is not exercised, the net issue will constitute 14 per cent of the fully diluted post issue paid-up capital.

With the green-shoe, the net issue would 15.80 per cent of the post issue capital. Part of the Wadhawan Group, HDIL has 112.1 million square feet of saleable area, of which almost 83 per cent is in the Mumbai Metropolitan Region. HDIL has developed 73.2 million square feet of saleable area both for residential and commercial purposes.

For the year ended March 2007, the company clocked a net profit of Rs 548.1 crore (Rs 5.48 billion) while the turnover stood at Rs 1,204 crore (Rs 12.04 billion).

Kotak Mahindra Capital Company and Enam Financial Consultants are the global coordinators and book-running lead managers to the issue.