May 22, 2013 11:17 AM IST | Source:

Puravankara Projects IPP issue opens, shares down 6.5%

Institutional placement programme (IPP) issue of Bangalore-based real estate company Puravankara Projects has opened for subscription today and will close tomorrow.

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Puravankara Projects shares dropped more than 9 percent Wednesday, after it fixed a floor price of Rs 80 per share for its IPP issue, which was lower than previous day's closing price.

Institutional placement programme (IPP) issue of the Bangalore-based real estate company is open for subscription today and will close tomorrow.

On Tuesday, the share closed at Rs 95.95. The price band for the IPP issue is at Rs 80-85/share.

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Puravankara intends to use net proceeds of the issue towards prepayment and repayment of existing debt, expanding business operations and general corporate purpose.

"As of March 31, 2013, the amount of the total outstanding loans (secured and unsecured) of the company on a consolidated basis was Rs 1,785.925 crore," the company in its prospectus filed with the SEBI said.

Consolidated net profit grew by 79.35 percent year-on-year to Rs 243.435 crore during the financial year 2012-13 and total income during the same period rose by 53 percent to Rs 1,248.48 crore.

Currently promoters hold 89.96 percent stake in the company as of March 2013.

Axis Capital, JP Morgan India Private Limited and Kotak Mahindra Capital Company are the book running lead managers to the issue.

At 10:00 hours IST, the stock was quoting at Rs 89.75, down 6.46 percent on Bombay Stock Exchange.

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