IVR Prime IPO subscribed 47 per cent as issue closes

26 July 2007

Mumbai: The initial public offer (IPO) of IVR Prime Urban Developers, a Hyderabad-based real estate developer and subsidiary of IVRCL, received 47 per cent subscription on the second as the public issue closed on July 26.

On July 25, the IPO received a total of 6.66 million bids as against issue size of 14.15 million shares. A total of 231,020 bids were received at cut off price.

Qualified institution investors (QIIs) portion was subscribed 76 per cent, non-institutional investor`s portion was subscribed 4 per cent, retail investor`s portion was subscribed 6 per cent. Employees portion was, however, unsubscribed.

The issue was priced in the range of Rs510 to Rs600 a share. The net issue will constitute 21.82 per cent of the fully diluted post issue paid-up equity capital of the company.

The book running lead managers to the issue are Enam Financial Consultants and Kotak Mahindra Capital. Shares of the company will list on both BSE and NSE.

IVR Prime intends to utilise the issue proceeds to finance the development and construction costs for Jigani project, IT park and mall to be constructed at Gachibowli. The company also planned to repay the loan to IVRCL and Karnataka Bank. In addition, the company will pay the cost of development right to IVRCL.