IVR Prime Urban Developers, a subsidiary of IVRCL Infrastructure and Projects, is open for subscription with an initial public offering (IPO) of 1,41,50,000 equity shares of Rs 10 each in a price band between Rs 510 and Rs 600 per share.

The 100 per cent book building issue will be close on July 26, 2007. Of the total issue, the company has reserved 1.50 lakh equity shares for its employees.

The issue, which constitutes 22.06 per cent of the fully diluted paid-up capital of the company, will raise up to Rs 849 crore at the upper band and Rs 721 crore at the lower end.

IVR Prime focuses on integrated townships, residential developments including affordable homes, and commercial projects such as hotels, retail malls and IT Parks.

As on June 21, the company claims to have a land reserve of 2,478.85 acres, consisting of about 75.45 million square feet (msf) of saleable area in Hyderabad, Visakhapatnam, Chennai, Bangalore, Pune and Noida.

Of the total land reserve, 54.57 per cent (1,352.82 acres) are located in Chennai.

For fiscal 2007, the company has reported a net profit of Rs 20.67 crore as against Rs 11.70 crore last year. For FY05, net profit was Rs 70 lakh.

Total income for FY07 stood at Rs 147.82 crore against Rs 136.42 crore last year. It was Rs 21.84 crore in FY05.

The company’s ongoing projects are in Chennai (47.62 msf), Pune (9 msf), Noida (6.73 msf), Visakhapatnam (4.71 msf), Bangalore (4.40 msf), and Hyderabad (2.99 msf).

Of the net proceeds of the issue, the company intends to utilise Rs 57.37 crore for the Jigani project in Bangalore, Rs 334.71 crore for the IT Park and a mall project at Gachibowli in Hyderabad, up to Rs 147.18 crore for repayment of loan to the parent company, up to Rs 41.96 crore for loan repayment to the Karnataka Bank and Rs 85.70 crore for payment of the cost towards acquiring development right from the parent company.