Indiabulls Real Estate Ltd has managed to get commitments for its Singapore real estate investment trust (Reit) offering.
MUMBAI: Indiabulls Real Estate Ltd has managed to get commitments for its Singapore real estate investment trust (Reit) offering.
After finding it tough in the morning, the issue managed to get the mandatory minimum subscription for 1,000 units from retail investors late on Friday.
India’s No. 4 realtor had to extend its issue deadline on Thursday by one day due to poor response from retail investors.
The company, backed by steel tycoon Lakshmi Niwas Mittal, has commitments for $259 million [Singapore dollar (S$) 353.5 million], lower than the $286 million it was eyeing. One S$1=Rs 31.29.
A statement filed with the Singapore stock exchange said Indiabulls Properties Investment Trust, the entity floating the Reit, got commitments for 262 million units for Singapore $1 apiece, the bottom of S$1-$1.1 range. In all, 353 million units were on offer.
A source close to the development told DNA Money Indiabulls was struggling to meet the retail investor minimum on Friday morning.
“By afternoon they got the number and closed it immediately before speculation hit them,” the source said.
Indiabulls Properties chief executive Ajit Mittal said the issue “received very good response from retail investors today (Friday).”
There was scepticism, however. An analyst with a foreign brokerage, on the condition of anonymity, said the issue hadn’t met even two-thirds of the requirement Friday morning.
“How did they suddenly close it successfully? Indiabulls itself must have bought the issue out to avoid a major negative impact. Indian realtors are facing trouble from all quarters,” the analyst said.
Indiabulls is now expected to open the bids by June 11, 2008, and declare the IPO results then.
Merrill Lynch & Co and Deutsche Bank arranged the sale.
s_pooja@dnaindia.net M C Govardhana Rangan of Bloomberg contributed to this story
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}