Neptune Developers Ltd, a first generation Mumbai-based real estate company, hopes to hit the capital market with its initial public offer (IPO) by June-July this year. The company intends to raise around Rs 495 crore through the issue.
The company had filed draft red herring prospectus (DRHP) with Securities and Exchange Board of India (SEBI) in December 2009. "A final observation from the market regulator has been received and we will file red herring prospectus (RHP) in due course of time. We hope to come out with the issue in June-July," said Nayan Bheda, managing director, Neptune Developers.
A real estate venture capital fund promoted by the Piramal Group, IndiaREIT has invested Rs 209 crore in Neptune Developers. "The venture capital firm holds close to 16 per cent stake in Neptune Developers and it plans to sell 32 lakh shares through IPO," added Nayan Shah, president-operations, Neptune Developers.
Neptune Developers aims to utilise the proceeds of the IPO to fund its ongoing and forthcoming real estate projects.
The company has already completed 3 projects with total saleable area of 1.44 million sq. ft. As many as 7 projects are being implemented by the company in Mumbai with saleable area of 6.45 million sq. ft.
The company has also firmed up eight project having saleable area of 24.96 million sq. ft in Nagpur, Pune, Hyderabad, kochi and Vizag.
It also proposes to undertake a real estate project in Chennai. Neptune will develop affordable and low cost housing project under 'Swarajya' brand as it has done in Ambivali, Kalyan and Mumbai Metropolitan region (MMR), where it is offering 1-2 BHK residential flats prices less than Rs 10 lakh each.
