Opening today is another IPO from a real estate company, IVR Prime Urban Developers, a subsidiary of IVRCL Infrastructure and Projects. The company is offering 1.4 crore shares through the book building process which is expected to raise between Rs.721 crore to Rs.849 crore in a price band of Rs.510 to Rs.600 per share.

On till the 26th of July, the issue makes up 22.06% of the fully diluted paid-up capital, with a reserve of 1.5 lakh shares for the company’s employees. Hyderabad-based IVR recently announced its intention to make inroads into the Gujarat real estate market with an eye for residential and business hotel projects.

With a land bank of almost 2,500 acres in Hyderabad, Visakhapatnam, Chennai, Bangalore, Pune and Noida, the company is now exploring new markets.

The company turned out with Rs.147.82 crore in 2006-07 and netted a profit of Rs.20.67 crore. Financial experts have rated the IVR IPO as an expensive issue, but considering the positive trends in the real estate market, the issue can be subscribed to.

The company is executing projects on 75.45 million sq. ft in residential, commercial, retail and hospitality ventures in Hyderabad, Visakhapatnam, Chennai, Bangalore, Pune and Noida.

The funds raised from the IPO would be used to repay the debts arising out of projects under execution.

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