Parsvanath files for IPO; issue by May

Delhi-based real estate developer, Parsvnath Developers which is heading for an initial public offer filed the draft red herring prospectus with Securities and Exchange Board of India (Sebi). The public issue will be of up to 332,38,000 equity shares which are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

"We hope to secure Sebi clearance by mid April. And by the first week of May we are set to hit the market," said Pradeep Jain, chairman, Parsvnath Developers. The company has many ongoing projects and eyes to meet their cost of development.

The company has reserved 2 lakh shares for its eligible employees and the rest 330,38,000 shares are for the public. The face value is Rs 10 each and the pricing of the issue is to be determined through 100 per cent book building process. A minimum of 50 per cent of the net offer to the public will be allocated to qualified institutional buyers (QIBs) and up to 35 per cent will be for the retail bidders on a proportionate basis.

On the real estate front, Parsvnath has its eye on Maharashtra. Till two years back, the company was confined to NCR (National Capital Region) and Delhi. However, now Maharashtra figures prominently in their future plans. "We are looking to expand into Maharashtra including Mumbai," Jain told Business Standard.

The company is also in advanced stage of talks with some of the land owners in the cities, but Jain declined to comment on it. This is part of the company's plan to expand across eight states in India. Parsvnath Developers has a presence in around 30 cities in the country.

Currently it is developing integrated townships, residential projects as well as commercial complexes.