Assetz files confidential IPO papers, eyes Rs 1,200 Crore
Real estate developer Assetz Ltd has filed preliminary papers with markets regulator Securities and Exchange Board of India (SEBI) through the confidential pre-filing route to raise approximately Rs 1,200 crore via an initial public offering.
The proposed listing would mark the public-market debut of one of Bengaluru's fastest-growing residential developers, which counts Singapore-based investment fund AGP Partners among its key shareholders.
In a public notice issued Saturday, the company said it had filed the pre-filed draft red herring prospectus with Sebi and the stock exchanges in relation to the proposed IPO of its equity shares on the main board.
People familiar with the matter said the issue size is pegged at around Rs 1,200 crore, with JM Financial, BofA Securities India and Motilal Oswal Investment Advisors serving as book-running lead managers.
Under the confidential route, companies can keep draft offer documents out of the public domain until the regulatory review process reaches a more advanced stage. As a result, details on the offer structure, financial performance, valuation and listing timeline remain undisclosed at this stage.
According to real estate consultants, Assetz has built an institutional-style operating and governance framework, with its projects structured through special purpose vehicles (SPVs) to ensure greater transparency and governance at the project level.
The developer has raised project-level capital over the years from investors and financial institutions including JP Morgan, Aditya Birla Capital, Motilal Oswal Alternates and HDFC Ltd, the consultants said, adding that the company has raised and repaid more than Rs 1,000 crore of capital to date.
Assetz is led by Managing Director Akshay Kishore Dewani and Executive Director Sunil Kumar Pareek, both shareholders in the company, supported by a board of non-executive and independent directors. Ben Cameron Melville Salmon, associated with AGP Partners, serves as a non-executive director on the board and is not a promoter of the company.
Amid strong housing demand in Bengaluru, the developer has stepped up land acquisitions to expand its project pipeline, recently acquiring around 200 acres to strengthen its presence in the city's high-demand eastern and northern corridors.
People familiar with the matter said Assetz has tied up roughly 550 acres in all, with a development pipeline of about 4.5 crore square feet, largely through joint development arrangements. The Bengaluru-focused developer is also exploring an entry into the Mumbai Metropolitan Region as part of its geographic expansion plans, they added.
(With inputs from PTI)
