DB Realty Ltd has struck a deal to raise 2.7 billion rupees ($58.3 million) from six anchor investors in its $325 million initial public offer that opened on Friday, the company said.
It will issue a total of 5.56 million shares at 468 rupees each, the lower end of the IPO price band, to a fund of Reliance Capital, ICICI Prudential Life Insurance Co, Janus Contrarian Fund, ING Janus Contrarian, India Capital Fund and India Equity Growth Fund.
The investors will have to bring in additional funds if the IPO is priced higher, the company said in a statement.
The IPO in a price band of 468-486 rupees a share was subscribed only 0.1 times by noon (0630 GMT), data on the National Stock Exchange website showed.
The Mumbai-based real estate firm is offering up to 13.4 percent of equity to partly fund projects and to repay debt. The company had consolidated debt of 6 billion rupees.
DB Realty is currently developing 19.5 million sq ft of projects, mostly in Mumbai, Managing Director Shahid Balwa said.
Enam Securities Private Limited and Kotak Mahindra Capital Company Private Limited are the book running lead managers to the issue.