13 December 2007
Now Brigade Group enters Stock Market
I have been away from blogging and a lot has happened in Bangalore Real Estate Industry over past 2 months, now starting from the hottest news yes about Brigades IPO, hope it will have a better start then Puravankara, but conditions spell a disaster looking at the market conditions. this is a group of news collected from various reliable sources.
Brigade Enterprises, a Bangalore-based real estate company, has filed papers for its initial public offering with the Securities & Exchange Board of India.
The company proposes to issue 1.66 crore equity shares of Rs 10 each for cash, at a price to be decided through the 100 per cent book building process.
The net issue to the public comprises 1.65 crore equity shares. There will also be a green shoe option of up to 24.93 lakh equity shares.
The issue will constitute 16.87 per cent of the fully diluted post issue paid-up capital assuming that the green shoe option is exercised in full and 15 per cent assuming the option is not exercised.
Brigade Enterprises intends to use the proceeds for future growth plans including land acquisition, meeting construction and development costs of ongoing and forthcoming real estate projects.
JP Morgan India, ICICI Securities and Enam Securities are the book running lead managers to the issue. The shares are proposed to be listed on the Bombay Stock Exchange and National Stock Exchange.
Source:Economic Times , September 2007
Brigade Enterprises IPO to raise 6.5 bln rupees
Dec 4 2007 - Real estate developer Brigade Enterprises Ltd said on Tuesday it plans to raise up to 6.48 billion rupees through an initial public offer that opens on December 10 and closes on December 13.The Bangalore based firm has set a price band of 351-390 rupees per share for its 16.62-million-share public issue.
The funds raised are to be used for land acquisition and construction at ongoing projects, the company said in its draft red herring prospectus.
JP Morgan India, Enam Securities and ICICI Securities are the book running lead managers to the issue.
Brigade joins the list of Indian developers rushing to the capital market to cash in on an urban real estate boom. Restrictions on bank funding of land acquisitions has also forced real estate firms to raise equity to fund surging land costs.
India's largest real estate firm DLF Ltd , which raised $2.25 billion in the country's biggest IPO in June, currently trades 80 percent above its issue price of 525 rupees a share.
The company plans to issue 16,624,720 shares at a price which will be decided through the book-built route, it said in a statement. There will also be a greenshoe option up to 2,493,708 shares.
The issue will constitute 16.87% of Brigade’s post-issue paid-up capital.
The funds raised would be used for land acquisition and meeting construction and development costs, it added.
Source:
www.livemint.com Brigade IPO Grading : Brigade IPO gets IPO Grade 3
Brigade IPO which is opening for subscription next week has managed to get an IPO Grade 3 from CARE. Grade 3 on a scale of 5 represents average fundamentals. Many smaller IPO’s have managed to get a IPO Grade 4. However these gradings were CRISIL IPO Grade and not CARE IPO Grade. Sources say that Brigade IPO managed only a IPO grade of 3 on 5 since it project concentration is skewed heavily towards the Bangalore market exposing Brigade Enterprises Limited to, what is commonly known as, single market risk. Lets see how the Brigade IPO performs.
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