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The firm also plans on considering pre-IPO placements of Rs. 1175 cr worth of equity shares.

Embassy Properties have joined ventures with a Malaysian company Azikaf SDN BHD, a member of Emkay Group to develop a business park in Cyberjaya, MKN Embassy Techzone. This will be first real estate development outside the country.

Presently the company is developing 49.65 million sq. ft. area. It includes 63 international and domestic projects.

The proceeds from the issue will be used to finance the construction and development of ongoing projects, investments, associates, paying loans etc.

The book running lead managers to the issue are Nomura Financial Advisory and Securities (India) Pvt Ltd, UBS Securities India Private Limited, Edelweiss Capital Ltd.

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The draft is available on the Edelweiss website. The lead running managers for the issue are Nomura, UBS, Local Investment Bank and Citi.

The prospectus included that Embassy property is looking at pre-IPO placement of around 57 million shares for up to 11.75 billion rupees with certain investors. The retail investors may be offered a 5% discount on the issue price.

Though the time line is not yet been set.

The Indian companies have raised a lot of money through share sales by mid-June of FY10 from 56 issues which is higher than last year, as shown by the data collected by Thomson Reuters.

India has also asked bids to appoint 4 banks for managing a follow-on public offering in state-run Power grid Corp of India.

At present, Sahara Prime City is developing nine integrated townships and one residential complex in cities such as Lucknow, Indore, Nagpur, Ahmedabad, Jaipur, Solapur and Cochin. The group’s ambitious Ambey Valley project is not a part of Sahara Prime City.

Sahara Prime City plans to develop 16 more integrated townships and would pump in another Rs 1426.83 crore from the proceeds of the IPO.

The DRHP said it would develop 13.41 million square feet of residential space in the upcoming projects across the country, including Bangalore, Chandigarh, Jabalpur, Jodhpur, Porbandar, Haridwar and Pune.

‘After weathering the worst funds crisis for one and half year, the realty sector has now started seeing inflow of capital and funds,’ said Anuj Puri, the country head of leading global realty brokerage firm Jones Lang LaSalle-Meghraj.

Mr. Puri further said, ‘Sales are improving and private equity funds are coming back. With market sentiments getting bullish, prospects of fund-raising are even brighter. You can now see how every company is taking the QIP route to raise funds,’.

QIP is a tool to raise capital whereby a listed company issues equity shares, fully or partly convertible debentures or securities, instead of warrants, to institutional buyers.

After losing almost 75% of its stock valuation last year, India’s realty sector has raised about $15 billion (Rs.750 billion/Rs.75,000 crore) through routes like QIP in the past six months.

Among the developers who have started mopping up funds over the past few months are the largest player in the industry, DLF Ltd, with $780 million, Unitech with $325 million and Indiabulls Real Estate with $550 million.

Propertywala

With market conditions still tight, it will be tough for these issuers to demand substantial premium from investors. Looking at the present volatile market, it would be really difficult to predict the premium.

The last to be listed, Mahindra Holidays and Resorts, debuted on BSE 7 percent higher than its issue price. Godrej Properties, the real estate arm of the Godrej Group, plans to sell around 10 percent through its maiden public issue. Before that, the company will place a 3.5 percent equity with select institutions.

The IPO is expected to fetch the company anywhere between 450 crore and 600 crore rupees. It will use the proceeds for building low-cost housing. ICICI Securities and Kotak Mahindra Capital are the merchant bankers to the issue.

This would be separate from its equity contribution in the JV firm Emaar MGF. Emaar holds 41% in Emaar MGF while the domestic JV partner MGF Group has 56%. The remaining equity stake is with private equity (PE) firms and other investors.

The Dubai-based group will pick equity in separate special purpose vehicles (SPVs) which will develop two retail and one office property in Gurgaon and Mohali. The injection of funds is particularly significant for the company, as it has come at a time when raising funds has become extremely difficult for real estate firms.

Debt has become very expensive and is largely unavailable. Emaar MGF, which withdrew its Rs 7,000-crore IPO in February after having failed to elicit investors’ response due to poor market sentiments, is looking at stitching 2-3 private equity deals in the coming months to fund its commercial projects.

Most realty firms have been looking forward to private equity players to fund their projects. However, PE firms too have turned cautious now and are driving hard bargains in the changed circumstances. Unitech too has recently obtained $175 million equity funding from Lehman Brothers’ real estate fund to develop a commercial property in Mumbai.

Slackening demand has multiplied real estate companies’ woes, restricting their cash flows. India’s central bank, battling a double-digit inflation, has hiked interest rates, prompting potential home buyers to defer their purchases. The signs of a slowing economy and expectations of a further fall in property rates have led corporate and retailers to postpone their space booking.

Emaar MGF, which is currently present in 26 cities, has a number of projects across residential, commercial, retail and hospitality sectors. It recently launched Boulder Hills residential project in Hyderabad and an integrated township in Mohali. The company is also executing the 27.7 acre commonwealth games village project in Delhi.

The company plans to develop over 200 hotels over the next 7-9 years. It has two equal joint ventures with Accor and Premier Inn for its hospitality ventures.

However, Indiabulls Properties Investment Trust went ahead and listed last week, only to be disappointed.

It raised less than what was hoped for in the IPO despite extending its offer deadline by a day in hope of attracting more retail investors. Its units then dropped 10 per cent on their debut last week and then needed to be supported by the IPO manager Deutsche Bank on day two of trading.

All these, despite the trust being backed by billionaire Lakshmi Mittal, one of the world’s richest men.

Instead of listing in Singapore, Unitech Managing Director Sanjay Chandra says his firm will seek US$300 million from private equity firms to build hotels and shopping malls in India this year.

Unitech said yesterday it had sold a 50% stake in a Mumbai project to Lehman Brothers Holdings’s real estate fund for US$175 million.

Mr Chandra did not say when or whether the Singapore trust listing may be revived.

As of last week, 12 of the 15 new shares listing in Singapore this year were trading below their offer price.

The last firm to scrap its listing plans was Grand Pacific Properties earlier this month.

However, it’s not all bad news. Last week, it was reported that China-based New Century Shipbuilding plans to raise up to US$1 billion ($1.4 billion) in a Singapore initial public offering (IPO). This would be Singapore’s biggest IPO of the year to date

But the message for the sizzling Indian real-estate development business was worse: get ready for a slowdown.

Emaar MGF Land Pvt. Ltd. said it pulled its initial public offering of shares because of “prevailing adverse market sentiments, fueled by renewed indications of a U.S. recession and global meltdown.” Emaar MGF is a joint venture between the developers Emaar Properties PJSC of Dubai, United Arab Emirates, and MGF Development Ltd.

Uppal Group is New Delhi based Housing Company. It is owned by Manish Uppal and Bhushan K. Uppal. The company has appointed Goldman Sachs (India) Securities Pvt. Ltd as one of its merchant bankers. Company might hire more merchant bankers.

Uppal Group plans to launch a public issue. The public issue of Uppal group is expected to hit the market in the second half of the year. Company has also planned to sell shares to private equity firms before the IPO. The total dilution through private equity and IPO is expected to not to exceed 20 percent.

Uppal Group has planned to use the proceeds of the IPO to part finance its special economic zone (SEZ) projects and they need funds for that. Apart from that, they also need funds for their expansion plans. The company has decided to invest around Rs 1500 crore by March this year to expand its operations outside New Delhi. Uppal plans to expand into big cities like Mumbai, Pune, Hyderabad and into small cities like Chandigarh. Uppal Group already has running projects in these cities.