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CNBC-TV18 has learnt that Vascon Engineers is going to come up with an issue of close to 35 lakh shares.

 

It is a real-estate company looking to float an IPO by the end of this year. They will file their Draft Red Herring Prospectus by the end of this month, stated sources.

 

They are looking to raise Rs 450 crores from the capital market. The company, according to sources, has 3.5 crore shares and are looking to dilute 10% stake. Analysts said that it  will work out to 35-38 lakh shares in the market.

 

They have got a valuation between 3,700-4,000 crores of their landbank at the moment and the price band would work out between Rs 1,000-1,300 per share, at a face value of Rs 10. Their merchant bankers are Kotak Securities and Merill Lynch who are helping them put up this IPO.

 

Vascon Engineers has 17- 20 m square feet under development at the moment and they have already constructed 10 lakh square feet of residential projects and 13 lakh square feet of IT cum commercial buildings. They are a big player in the Pune market and also have a presence in Mumbai, Goa, Gujarat, Punjab and Himachal Pradesh. 

 

Pre-IPO placements, HDFC Property Fund picked up 10% stake in the company for Rs 138.5 crore. Another interesting special purpose vehicle, or SPV, has been done with Credit Suisse for a hotel cum IT project, which is worth Rs 300 crore in Pune. Credit Suisse picked up 75% in that SPV. 

 

Cipla Chairman, Yusuf Hamid , is a important shareholder and this fact has been confirmed by the Vascon management. But the shareholding capacity is not entirely from Cipla, but from the entities that Yusuf Hamid owns.

 

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