Sobha Developers files red herring prospectus

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Sobha Developers Limited (SDL), one of India's leading real estate development and construction companies engaged primarily in residential and commercial development, is proposing, an Initial Public Offering (IPO) of its equity shares   and has filed its Red Herring Prospectus with the Registrar of Companies, Karnataka,. SDL proposes to issue 8,893,332 equity shares of Rs. 10/- each at a price band of Rs. 550  - Rs. 640 per share through the 100% Book Building Process. The IPO comprises a reservation of up to 889,300 equity shares for SDL's permanent employees and a Net Issue to the public of 8,004,032 equity shares and would constitute 12.20 % of the fully diluted capital of SDL. The IPO is scheduled to open on Thursday, November 23 and close on Wednesday, November 29, 2006.

 

Out of the Net Issue, at least 60% will be allocated on a proportionate basis to FIIs and domestic Qualified Institutional Buyers ("QIBs") and up to 10% will be available for allocation on a proportionate basis to Non-Institutional Bidders and 30% will be available for allocation on a proportionate basis to Retail Individual Bidders.

 

SDL was promoted by Mr. P.N.C. Menon and Mrs. Sobha Menon. SDL has an unique backward integrated business with competencies and in house resources capable of delivering a project from conceptualisation to completion. Its facilities and resources include an architectural and design studio, concrete block making plant, metal and glazing factory, interiors and wood working factory, mechanical, electrical and plumbing facility and a large project management team. As on September 30, 2006, SDL has developed and constructed 21 residential projects in Bangalore covering approximately 2.98 million square feet, 75 contractual projects in 8 Indian states covering approximately 8.42 million square feet and two commercial projects aggregating 0.11 million square feet. In addition, as on the same date, SDL had Land Reserves aggregating about 2747 acres in Bangalore, Mysore, Pune, Chennai, Cochin, Thrissur and Coimbatore. 

 

SDL's total revenues and profit after tax increased from Rs. 1177.10 million and Rs. 12.26 million in fiscal 2003 to Rs. 6,284.36 million and Rs. 892.30 million respectively in fiscal 2006. For the six month period ended September 30, 2006, SDL's  consolidated total revenues and profit after tax was Rs. 5328.42 million and Rs. 539.73 million respectively, vis-à-vis Rs. 2628.72 million and Rs. 232.53 million respectively for the corresponding six month period ended September 30, 2005.  

 

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