Monday, December 10, 2007

Brigade Enterprises IPO subscribed 77% on day one

Initial public offering of Brigade Enterprises (BEL) subscribed 77% on day one. The issue received 12.78 million bids as against issue size of 16.62 million shares. A total of 59,072 million bids were received at the cut off price.

The issue is open till December 13. The price band has been fixed between Rs 351 to Rs 390 a share. The issue has been graded by ICRA. It has assigned IPO Grade 3, indicating average fundamentals, to the proposed initial public offering of BEL. The issue will constitute 16.87% of the fully diluted post issue paid-up capital of the company assuming that the green shoe option is exercised in full and 15% assuming that the green shoe option is not exercised. The equity shares of the company, offered through this IPO, are proposed to be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). JP Morgan India and ENAM Securities are helping to raise maximum of Rs 6,483.64 million via this public issue.

Originally set up in 1990, BEL is one of the major diversified real estate developers in Bangalore. Besides Bangalore, it has taken up few projects in Mysore. Recently it has initiated some development activities in other parts of South India including Mangalore, Hyderabad and Chennai. So far BEL has completed and delivered around 67 projects aggregating to around 6.7 million square feet of space comprising residential (71%), Commercial (26%) and hospitality ventures (3%).

1 comment:

Yasser Rahman said...

well, this was very much expected . Brigade Group is doing a lot of new projects, and most of them are in premium locations. People in the industry are honestly baffled as to how Brigade Group is able to get so many premium properties all over south India.

Yasser Rahman
Connection Point