Realty sector seems to be making a comeback in the IPO market. Barely weeks after Bangalore-based Nitesh Estates raised Rs 405 crore in its public issue, Mumbai-based Entertainment World Developers Pvt Ltd, a tier II city-centric retail and mixed-use player, is joining the maiden offer bandwagon while Prestige Estates is preparing for its IPO roadshows later this month.
EWDPL, which is backed by a host of private equity funds, is looking to raise Rs 600 crore in its initial public offer outing. The company will file its draft red herring prospectus with market regulator SEBI soon, sources familiar with the development said.
An email query sent to EWDPL did not elicit any response at the time of posting this story.
ICICI Securities, Macquarie, Kotak and Edelweiss are the lead managers of the issue while Amarchand Mangaldas is the legal advisor, sources added. It is understood that the private equity and other investors in EWDPL would look at a part exit in the IPO.
The company counts among its investors and equity partners: ICICI Venture, Phoenix Mills Ltd, MPC Synergy, Yatra Capital, Eredene Capital Plc, investment firm Sapphire, Edelweiss Capital, Kshitij Venture Capital Fund, Landmark Dalmia Group and Biltech Engineers.
EWDPL develops malls, urban city centres and large-scale residential townships under the brand name Treasure. The group has projects in, what it calls the real India, non-metro emerging cities such as Indore, Nanded, Raipur, Jabalpur, Chandigarh and Bhilai. EWDPL is promoted by Manish Kalani Group which has diversified interests such as manufacturing of cement pipes and sheets, wind energy and realty.
Its first development in 2005 was Treasure Island in Indore, a 6 lakh sq feet shopping mall complete with four-screen multiplex, entertainment zone, F&B and a hotel, and it claims to be the first such mall in a tier II town.
It will be interesting to watch how this IPO fares in a market that can be punishing to the realty sector. The lukewarm investor appetite for realty IPOs and a rather long pipeline of public issues from this sector has made it a tight-rope walk for many.
Very recently, Bangalore-based realty developer Nitesh Estates’ Rs 405-crore IPO sailed through thanks to a robust appetite from the institutional investor quarters.
Another Bangalore developer Prestige Estates is readying to start the IPO roadshows in the last week of May with a proposed plan to raise up to Rs 1,200 crore from the market. Prestige filed its DRHP in November last year for its public issue that will involve divesting of up to 20% stake. Enam Securities, UBS, J.P. Morgan and Kotak Mahindra Capital are the book running lead managers to Prestige issue, according to an earlier VCCircle report. Prestige three co-promoters are brothers Irfan Razack, Rezwan Razack and Noaman Razack and their family members who own 33% each in the company. For the year ended March’09, Prestige had a total income of Rs 914 crore with net profit of around Rs 77 crore. Amarchand Mangaldas is the legal adviser to the Prestige issue.