New Delhi, Aug 2: Real estate developer Assetz Ltd has filed preliminary papers with markets regulator Sebi using the confidential route to raise around Rs 1,200 crore through an initial public offering (IPO).
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 as a key shareholder.
Confidential IPO filing
In a public notice on Saturday, the company 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”.
According to people familiar with the matter, the IPO size is pegged at around Rs 1,200 crore.
JM Financial, BofA Securities India, and Motilal Oswal Investment Advisors are the book-running lead managers to the proposed issue, they added.
Under 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.
As a result, details regarding the offer structure, financial performance, valuation and listing timeline are not available at this stage.
Business and governance
Assetz has built an institutional-style operating and governance structure, with its projects structured through special purpose vehicles (SPVs), providing greater transparency and governance at the project level, according to real estate consultants.
Over the years, the developer has raised capital at the project level from investors and financial institutions, including JP Morgan, Aditya Birla Capital, Motilal Oswal Alternates, and HDFC Ltd.
The company has raised and repaid more than Rs 1,000 crore of capital over the years, the consultants said.
Assetz is led by its shareholder-cum-management team comprising Managing Director Akshay Kishore Dewani and Executive Director Sunil Kumar Pareek, supported by a board of non-executive and independent directors.
Singapore-based AGP Partners is a key shareholder in the company. Ben Cameron Melville Salmon, who is associated with the investment fund, serves on Assetz’s board as a non-executive director and is not a promoter of the company.
Expansion plans
Amid robust 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.
Overall, 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, they added.