Following DLF and ICICI Bank, the next IPO around the corner is the Rs.15 billion issue from Housing Development and Infrastructure (HDIL). 29.70 million shares will be offered within a price band of Rs.430 to Rs.500 at a face value of Rs.10 per share.

The offer opens on June 28 and will run through July 3, 2007. The over allotment provision, or the greenshoe option for the underwriters to the issue is for 4.45 million shares.

If the issue fixes the price at the lower end, i.e.Rs.430, the total capital raised would be Rs.12.77 billion. The real estate developer has a land bank of 78.30 million sq. ft, with a large chunk of the reserves, almost 83%, located in Mumbai. In the preceding financial year 2006-07, the company generated revenue worth Rs.12.04 billion, netting a profit of Rs.5.48 billion.

HDIL has reserved 6 lakh shares for its employees, over and above the 29.7 million shares for the public. Qualified Institutional Buyers (QIB) have been allotted a quota of 60% of the IPO, of which 5% has been set aside for mutual funds.

The rest of the issue will be open to high net worth investors (10%), and retail investors. Kotak Mahindra Capital, Enam Financial Consultants and ICICI Securities have been appointed as lead managers to the issue. HDIL is part of the Wadhawan Group which has been operating in the Mumbai Metropolitan region for almost 30 years.

Some of the projects under construction include: Affaire in Bandra West, a Multiplex in Kandivali (E), Harmony in Goregaon, Dreams residences and Dreams the Mall in Bhandup West and Kaledonia in Andheri East. The company is also venturing into infrastructure with the multi-service Vasai SEZ project.

A substantial proportion of HDIL’s land reserves come from the slum rehabilitation activities that the company undertakes in Mumbai, earning free space to construct apartments in lieu of free housing it provides for slum dwellers.

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