Mr. Subrata Roy Sahara led Sahara group has braced up for its maiden IPO with its realty arm Sahara Prime City Limited (SPCL) by filing its Draft Red Herring Prospectus (DRHP) with SEBI to raise close to Rs 3,450 cr.
SPCL plans to use the IPO proceeds, estimated to over Rs 3,450 crores including green shoe option, for its ambitious residential and commercial projects in 99 cities across the country. Sources said the company plans to issue shares at a face value of Rs 10 each at a price band to be decided later to raise above money.
Enam Securities Private Limited, JM Financial Consultants Private Limited and Kotak Mahindra Capital Company Limited are the Global Coordinators and Book Running Lead Managers for the issue. Edeliweiss Capital Limited, IDBI Capital Market Services Limited and Daiwa Securities SMB India Private Limited are the Boor Running Lead Managers.
SPCL is one of the largest real estate development companies in India, based on the size of its Land Reserves available for development and number of locations in which these Land Reserves are located, which consist of approximately 8,484.65 acres of land, including 4,194.10 lacs square feet of saleable area, which SPCL own or for which SPCL hold contractual development rights. Its business plan is focused on developing 88 integrated townships under the “Sahara City Homes” brand name and 15 residential complexes under the “Sahara Grace” brand name across 99 cities in India.
An integrated township typically will consist of a gated community with residential units in the form of apartment towers, townhouses and individual houses together with ancillary facilities such as schools, a hospital, a hotel, retail and leisure facilities. Its residential complexes typically will be smaller scale developments comprised solely of residential units. The primary source of revenue of company is expected to be from the construction and sale of residential units within its integrated townships.
SPCL currently have construction under way for nine integrated townships and one residential complex, which in the aggregate are planned to comprise approximately 547.10 lacs square feet of saleable area, 85.00 lacs square feet of which is already under construction. SPCL plan to deliver the residential units from 2011 in its integrated townships in Indore, Nagpur and Lucknow. SPCL refer to these 10 projects under development, for which land or land development rights have been fully acquired and construction has commenced, as Ongoing Projects.
SPCL have an additional 16 integrated townships for which SPCL expect to commence construction within the next 12 months, which SPCL refer to as Forthcoming Projects, which in the aggregate are currently planned to comprise approximately 884.70 lacs square feet of saleable area.