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Prestige Estates Projects, the Indian developer in a mall venture with CapitaMalls Asia, rose on its trading debut today after investors demanded 2.3 times the shares on offer in the initial public offering.
The shares advanced 8.8% to 199.10 rupees at 10:54 a.m. local time. Prestige, which mostly develops real estate in south Indian city of Bangalore where it is based, raised 12 billion rupees ($351.3 million) after selling shares for 183 rupees each.
The shares advanced 8.8% to 199.10 rupees at 10:54 a.m. local time. Prestige, which mostly develops real estate in south Indian city of Bangalore where it is based, raised 12 billion rupees ($351.3 million) after selling shares for 183 rupees each.
The developer sold 11.77 million shares to investors including the Government of Singapore, HSBC Equity Fund and Monetary Authority of Singapore before the sale opened.
Oberoi Realty, controlled by Indian billionaire Vikas Oberoi, rose on its first day of trading on Indian exchanges on Oct. 20 after raising 10.3 billion rupees in its IPO. Oberoi and Prestige’s sales may prompt US$3 billion ($3.9 billion) of property share sales at a time when real estate stocks have underperformed the Bombay Stock Exchange’s benchmark Sensitive Index. The BSE Realty Index has slid 1.5% this year, compared with a 16% advance in the Sensex.
Indian realty companies such as Lodha Developers and Emaar MGF Land Ltd. are among at least 11 builders waiting to tap the market, according to data compiled by Bloomberg.
Prestige plans to use the proceeds from the IPO to complete pending projects, buy land and repay some loans, Irfan Razack, chairman of the company, said on Oct. 7.
SINGAPORE PARTNER
The builder, which has completed 150 projects and developed 34.23 million square feet, has rights to develop 57.36 million square feet, of which 28.43 million square feet is saleable area and 11.04 million square feet is for lease, according to a company statement on Oct. 7.
Prestige has partnered with CapitaMalls Asia, the retail property unit of Southeast Asia’s biggest developer, to manage retail malls set up by it and another unit of the Singapore- based developer in South India.
Prestige’s profit rose 97% to 1.44 billion rupees in the year ended March 31, 2010. Revenue climbed 19% to 10.86 billion rupees.
Kotak Mahindra Capital Co., Enam Securities Pvt., J.P. Morgan India Pvt. and UBS Securities India Pvt. managed the sale.
