Sobha Developers files IPO papers

Bangalore-based Sobha Developers has filed its draft red herring prospectus (DRHP) with Securities & Exchange Board of India (Sebi).

According to a release issued today, Sobha is planning to offer 94,76,800 equity shares of Rs 10 each for cash at a premium to be decided through the book-built process. "The issue would constitute 13% of the fully diluted post issue paid-up capital of the company," the release added.

P N C Menon, chairman of Sobha Developers, said: "This is a historic moment for us at Sobha Developers, and we look forward to this IPO as an event that will help us welcome new members into our family."

The company has reserved up to 9,47,680 equity shares for eligible employees. Thus, the net offer to public would stand at 85,29,120 equity shares.

Sobha Developers is entering the capital market to raise funds for land acquisition, on-going and forthcoming projects and repay certain debts, the release said.

The Book Running Lead Managers to the Issue are Kotak Mahindra Capital Company and Enam Financial Consultants. IL&FS Investsmart Limited is the Co-Book Running Lead Manager.