Brigade Group IPO Likely By December, 2007

The Brigade Group, Bangalore’s leading real estate developer, is planning an initial public offering to raise capital which would fund its development activities. The IPO is planned for November – December this year, expecting market conditions to improve by then.

The series of IPOs from real estate companies was led by DLF’s mega issue, followed by HDIL, Omaxe, IVR Prime and Puravankara.

IVR Prime and Puravankara were caught of-guard by the Indian stock market’s reactions to instability in the US market.

IVR Prime Urban was listed on the Bombay Stock Exchange at a discount
of Rs.9.09% over its issue price of Rs.550 while Puravankara was forced
to lower its price band and extend its offer period when subscriptions
did not meet expectations.

It has fixed its issue price at Rs, 400 per
share of Rs.5 each
Omaxe listed at a 29% premium to the offer price of Rs.310 per share,
and had been oversubscribed 68 times when it closed on 20th July, just
before the US stock market started tumbling.

Emaar MGF has also made known that it would proceed with an IPO by the
end of this year as its development projects are in full steam.

Photo: Bangalore Church street trees 2 by T. R. Shankar Raman, licensed under CC BY-SA 4.0, via Wikimedia Commons.