QIBs, HNIs boost Omaxe, oversubscribed 68.34x

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Omaxe, a real estate player, has received an overwhelming response from investors, especially QIBs and HNIs.

A 1.77 crore shares issue received bids for 1.22 billion shares, which includes bids for 7.02 crore shares at cut off price. The issue has subscribed 68.34 times, as per NSE website.

A reserved portion of 1.05 crore share for qualified institutional investors received bids for one billion shares, which turned into subscription of 95 times. Foreign institutional investors were the major supporter to the issue.

Non-institutional investors have also given a strong boost to the issue with subscription of 81 times followed by retail 14 times.

Subscription Details

Investors	Times
Qualified institutional buyers	95.32
Non institutional investors	81.16
Retail individual investors	13.89
Employee Reservation	1.14
Total	68.34

 

 

 

 

The company had come out with a public issue of 1.78 crore equity shares of Rs 10 each with an additional green shoe option of upto 17.50 lakh equity shares in the band of Rs 265 to Rs 310 per share.

Omaxe, which has a presence in 30 cities and nine states, intends to deploy proceeds worth Rs 500 crore for payments related to land, Rs 236 crore towards repayment of loan and Rs 699 crore for meeting development and construction costs of some of its projects.

The company has a land bank of over 3,000 acres and at present 47 projects are under development.

The issue would constitute 11.20 per cent of the fully diluted post-issue paid-up capital of the company, if the green shoe option is exercised and 10.30 per cent, if the option is not exercised.

Of the total equity float, up to 1.75 crore equity shares are for the public, while the balance 2.96 lakh shares are reserved for eligible employees of the company. Additionally, there would be a green shoe option of 17.5 lakh equity shares.

Omaxe has appointed DSP Merrill Lynch Ltd, Citigroup Global Markets India and UBS Securities India as global coordinators and joint book running lead managers for the issue. JM Morgan Stanley is the book running lead manager.