Prestige Group to file DRHP

Another builder going for IPO. This is the builder who is constructing Prestige Shantiniketan for last 4 years and there is no sign as when all promised amenities will be ready. SEBI should closely monitor pre-IPO issues and audit post-IPO fund allocation.
* I'll not buy this stock. I can't trust a builder who doesn't have the capability to construct an apartment in 4 years and can't keep the promises which they made to it's investors. Can you trust?


Source - Moneycontrol
Bangalore based realty firm Prestige Estates Projects is planning to enter capital markets with an initial public offering (IPO) of Rs 1,200 crore. The company has filed a draft red herring prospectus (DRHP) with Securities & Exchange Board of India (SEBI).
The company has over 23 years of experience in real estate development. It has completed 142 real estate projects of approximately 27.09 million sq ft. It currently owns development rights for 52.57 million sq ft of developable area, which includes 24.49 million sq ft of saleable area and 9.64 million sq ft of leasable area.
The objects of the issue are to finance ongoing projects and projects under development; invest in existing subsidiaries which investment will be utilized for the construction and development of commercial ongoing project, retail ongoing and retail projects under development undertaken by those subsidiaries; finance the acquisition of land and repay certain loans of company.
For the year ended March 31, 2009, it has reported profit after tax and extraordinary items of Rs 70.73 crore on total income of Rs 916.15 crore. For the period of April-August 2009, its profit after tax was at Rs 66.51 crore on total income of Rs 437.85 crore.
The book running lead managers to the issue are Enam Securities Private Limited, JP Morgan India Private Limited, Kotak Mahindra Capital Company Limited and UBS Securities India Private Limited. Link Intime India Pvt Limited is the registrar to the issue.