Kolte-Patil Developers, a real estate developer in India, is entering the capital markets with an initial public offering (IPO) of 19,000,836 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.
The issue will open on November 19, 2007, and will close on November 22, 2007. The price band has been fixed between Rs 125 and Rs 145 per equity share.
The objects of the issue are to finance acquisition of development rights; finance the construction and development costs for some of the proposed projects; fund expenditure for general corporate purposes and achieve the benefits of listing on the Stock Exchange.
The issue comprises a net issue of 18,812,709 equity shares to the public and a reservation of 188,127 equity shares for eligible employees. The issue will constitute 25.25% while the net issue will constitute 25% respectively of the post-Issue paid up capital of the company. The equity shares are proposed to be listed on the NSE and BSE.
Kolte-Patil Developers develops and constructs properties in Pune and also in Bangalore. As of September 30, 2007, it has developed and constructed 25 projects, including 22 in Pune and 3 in Bangalore, covering a total of approximately 4.01 million square feet of saleable area. These include 16 residential complexes, 4 commercial complexes, 3 complexes designed for mixed residential/commercial use, and 2 information technology parks.
The company posted a total income (consolidated) of Rs 2, 524.43 million in fiscal 2007 and an adjusted profit after tax of Rs 835.61 million. For the 3 months ended June 30, 2007 , the Company posted a total income (consolidated) of Rs 889.65 million and an adjusted profit after tax of Rs 338.76 million..
The book running lead managers to the issue are DSP Merrill Lynch Limited and Edelweiss Capital Limited.
