“These materials are not for publication or distribution, directly or indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia). These materials are not an offer of securities for sale into the United States, Canada or Japan. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration. No public offering of securities is being made in the United States."
Prestige Estates Projects Limited (the “Company”), one of the leading real estate development companies in south India, proposes to enter the capital market on October 12, 2010 (“Bid/Issue Opening Date”), with an initial public offer of equity shares of Rs. 10 each (“Equity Shares”) for cash at a price (including a premium to be determined through a Book Building Process) comprising a Net Issue to the public of equity shares of Rs 10 each ( “Net Issue”) and a reservation of equity shares of Rs 10 each to eligible employees of the Company, aggregating up to Rs. 12,000 million (the “Issue”). The Bid/ Issue will close on October 14, 2010. Anchor Investor Bid /Issue Period will be one day prior to the Bid/Issue Opening Date.
The Price Band has been fixed from Rs 172 to Rs183 per Equity Share. This Issue has been graded by ICRA Limited as 3 on 5, indicating average fundamentals.
The Issue is being made through the 100% Book Building Process wherein at least 60% of the Net Issue will be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”), (“QIB Portion”). It is provided that the Company may allocate up to 30% of the QIB Portion, to Anchor Investors, on a discretionary basis (“Anchor Investor Portion”). Further 5% of the QIB Portion less Anchor Investor Portion shall be available for allocation on a proportionate basis to Mutual Funds only. The remainder shall be available for allocation on a proportionate basis to QIBs and Mutual Funds, subject to valid Bids being received from them at or above the Issue Price. Further, not less than 10% of the Net Issue will be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% of the Net Issue will be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. Bidders may participate in the Issue through the ASBA process by providing the details of their respective bank accounts in which the corresponding Bid amounts will be blocked by Self Certified Syndicate Banks.
The Equity Shares offered through the Red Herring Prospectus are proposed to be listed on the National Stock Exchange of India Limited and the Bombay Stock Exchange of India Limited .
The Book Running Lead Managers (“BRLMs”) are Enam Securities Private Limited, J.P. Morgan India Private Limited, Kotak Mahindra Capital Company Limited and UBS Securities India Private Limited.
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The Company has over 24 years of experience in real estate development. It has completed 150 real estate projects of approximately 34.23 million sq. ft. It has developed a diversified portfolio of real estate development projects focusing on projects in the residential (including apartments, villas, plotted developments and integrated townships), commercial (including corporate office blocks, built-to-suit facilities, technology parks and campuses and SEZs), hospitality (including hotels, resorts and serviced accommodation) and retail (including shopping malls) segments of the real estate industry. The Company and its Subsidiaries currently owns or holds development rights for 57.36 million sq. ft. of Developable Area, which includes 28.43 million sq. ft. of Saleable Area and 11.04 million sq. ft. of Leasable Area. It has experience in all aspects of the real estate development business, including land identification and acquisition, development, design, project management, sales and marketing, interiors and the provision of property services in relation to real estate developments. It has established a strong brand image, has a successful track record of execution and a diversified portfolio of real estate projects.
Disclaimer Prestige Estates Projects Limited is proposing, subject to market conditions and other considerations, to make a public issue of securities and has filed a Red Herring Prospectus (“RHP”) with the Registrar of Companies, Karnataka, at Bangalore. The RHP is available on the website of the Securities and Exchange Board of India at www.sebi.gov.in as well as on the respective websites of the Book Running Lead Managers (“BRLMs”) at www.enam.com, www.jpmipl.com, www.kmcc.co.in and www.ibb.ubs.com/corporates/indianipo.com. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the RHP filed with the Registrar of Companies, including the section titled “Risk Factors” of the RHP.”
The Equity Shares have not been and will not be registered under the US Securities Act of 1933 (the “Securities Act”) or any state securities laws in the United States and may not be offered or sold within the United States or to, or for the account or benefit of, “U.S. persons” (as defined in Regulation S under the Securities Act), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Accordingly, the Equity Shares are only being offered and sold (i) in the United States to “qualified institutional buyers”, as defined in Rule 144A of the Securities Act, in reliance on Rule 144A under the Securities Act, and (ii) outside the United States to certain persons in offshore transactions in compliance with Regulation S under the Securities Act.
The Equity Shares have not been and will not be registered, listed or otherwise qualified in any other jurisdiction outside India and may not be offered or sold, and Bids may not be made by persons in any such jurisdiction, except in compliance with the applicable laws of such jurisdiction.