Realty firm Prestige Estates is planning to raise Rs 800-900 cr through an IPO that would see the Bangalore-based company offloading 10-15% stake. Senior investment bankers confirmed the development indicating that the company could get listed by March next.
It is believed that the company has mandated investment banks like Kotak Mahindra Capital and Enam to prepare the road map for the eventual listing.
When contacted, Prestige Estates CMD Irfan Razzak said: “I am unable to comment on the matter at this juncture.” The move, it appears, comes after discussions between Prestige Estates and leading private equity players like HDFC Property Ventures and Singapore’s Temasek, reportedly failed over valuation issues. ET, in its September 7 edition, had spoken of Prestige Estates initiating discussions with these two entities.
The talks were aborted as the Bangalore-headquartered firm was looking at a valuation between $800 million and $1 billion, which the potential PE investors were not willing to fork out.
Started in 1995, Prestige Estates has over 180 developments with a built-up space of 20 million square feet. Prestige Estates joins the ranks of Emmar MGF Land, Lodha Developers and Sahara Prime City all of whom have made a beeline for raising finance through the IPO route. Conservative estimates indicate that real-estate IPOs could easily mop up over $5 billion.
The revival in the stock market since March has incidentally seen a spate of qualified institutional placement (QIP) based offering from realty companies. Unitech, Indiabulls Real Estate and Sobha Developers were some of the listed firms which rose funding through the QIP route.
Courtesy:- ET dt:- 12-10-09
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