Real estate developer Assetz Ltd has filed draft papers with markets regulator Sebi via the confidential route to raise around Rs 1,200 crore through an initial public offering (IPO).
This proposed public issue will mark the market debut of one of Bengaluru based residential developers, which includes Singapore-based investment fund AGP Partners as a key shareholder.
The company an a public notice on Saturday said it has filed "the pre-filed draft red herring prospectus with Sebi and the stock exchanges... in relation to the proposed initial public offering of its equity shares on the main-board of the stock exchanges".
JM Financial, BofA Securities India, and Motilal Oswal Investment Advisors are the book-running lead managers to the proposed issue, the report said.
As per the confidential pre-filing route, companies are allowed to keep their draft offer documents out of the public domain until the regulatory review process reaches a more advanced stage. Therefore, information on the offer structure, financial performance, valuation and listing timeline are not available at this stage.
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Assetz, over the years has raised capital at the project level from investors and financial institutions, including JP Morgan, Aditya Birla Capital, Motilal Oswal Alternates, and HDFC Ltd. It raised and repaid more than Rs 1,000 crore of capital over the years.
The company is led by its shareholder-cum-management team including Managing Director Akshay Kishore Dewani, Executive Director Sunil Kumar Pareek, a board of non-executive and independent directors.
Singapore-based AGP Partners is a key shareholder in the company. Ben Cameron Melville Salmon, linked with the investment fund is on Assetz's board as a non-executive director and is not a promoter of the company.
With the strong housing demand in Bengaluru, the developer has also stepped up land acquisitions to expand its project pipeline. It recently acquired around 200 acres to strengthen its presence in the city's high-demand eastern and northern corridors.
In total, Assetz has tied up around 550 acres and has a development pipeline of about 4.5 crore square feet, largely through joint development arrangements, people familiar with the matter said.
The Bengaluru-focused developer is also exploring an entry into the Mumbai Metropolitan Region (MMR) as part of its geographical expansion plans, the report said.
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