Akruti Nirman IPO opens Jan 15, price band at Rs 475-540

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Akruti Nirman, a real estate development company engaged in the primary business of development of commercial and residential properties, proposes to enter the capital market on January 15, 2007 with a public issue of 67,00,000 equity shares of Rs 10 each through 100% book building process.

The issue closes on January 19, 2007 and the price band has been fixed at Rs 475 to Rs 540. The issue will constitute 10.04% of the post-issue capital of the company. J P Morgan India and Enam Financial Consultants are the BRLMs for the issue and Intime Spectrum Registry is the registrar, as per press release.

In terms of rule 19(2)(b) of the SCRR, this being an issue for less than 25% of the post-issue capital, the issue is being made through the 100% book building process wherein at least 60% of the issue shall be allotted on a proportionate basis to qualified institutional buyers. 5% of the QIB portion shall be available for allocation to mutual funds only and the remaining QIB portion shall be available for allocation to all the QIB bidders, including mutual funds, subject to valid bids being received at or above the issue price.

If at least 60% of the issue cannot be allotted to QIBs, then the entire application money will be refunded. Further, not less than 10% of the issue shall be available for allocation on a proportionate basis to non-institutional bidders and not less than 30% of the issue shall be available for allocation on a proportionate basis to retail individual bidders, subject to valid bids being received at or above the issue price. The equity shares are proposed to be listed on the NSE and BSE. 

The company proposes utilize the net proceeds of the issue to finance acquisition of lands / rights in lands and development rights, finance the construction and development costs for some of its projects under development, repay certain loans of the company and fund expenditures for general corporate purposes.

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