Sobha Developers IPO opens for subscription

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The Bangalore-based Sobha Developers, SDL is open for subscription with a public issue of 88,93,332 equity shares of Rs 10 each through book building process in the price band of Rs 550 - 640 per share. 

The issue comprises a reservation of upto 8,89,300 equity shares for SDL's permanent employees and a net issue to the public of 80,04,032 equity shares. It constitutes 12.20% of the post-issue paid-up capital of the company.

The issue closes on November 29.

Out of the net issue, at least 60% would be allocated on a proportionate basis to FIIs and domestic qualified institutional buyers.

About 10% of the total issue 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.

The company developed and constructed 21 residential projects in Bangalore covering approximately 2.98 million sq ft, 75 contractual projects in eight Indian States covering about 8.42 million sq ft and two commercial projects aggregating 0.11 million sq ft.

SDL has land reserves measuring to about 2,747 acres in Bangalore, Mysore, Pune, Chennai, Kochi, Thrissur and Coimbatore.

The company proposes to utilise the net proceeds of the issue to finance land acquisition and fund ongoing projects. A part of proceeds would be used to repay certain loans.

The shares will be listed on Bombay Stock Exchange and National Stock Exchange.

Kotak Investment Banking, Enam Financial Consultants and IL&FS Investsmart are the book running lead managers.