HDIL IPO opens on June 28

The offer opens on June 28 and will run through July 3, 2007.

The over allotment provision, or the greenshoe option for the
underwriters to the issue is for 4.45 million shares.

If the issue
fixes the price at the lower end, i.e.Rs.430, the total capital
raised would be Rs.12.77 billion.
The real estate developer has a land bank of 78.30 million sq.
ft, with a large chunk of the reserves, almost 83%, located
in Mumbai. In the preceding financial year 2006-07, the company
generated revenue worth Rs.12.04 billion, netting a profit of Rs.5.48
billion.

HDIL has reserved 6 lakh shares for its employees, over
and above the 29.7 million shares for the public. Qualified
Institutional Buyers (QIB) have been allotted a quota of 60% of
the IPO, of which 5% has been set aside for mutual funds.

The rest
of the issue will be open to high net worth investors (10%),
and retail investors.
Kotak Mahindra Capital, Enam Financial Consultants and ICICI
Securities have been appointed as lead managers to the issue.
HDIL is part of the Wadhawan Group which has been operating
in the Mumbai Metropolitan region for almost 30 years.

Some
of the projects under construction include: Affaire in Bandra
West, a Multiplex in Kandivali (E), Harmony in Goregaon, Dreams
residences and Dreams the Mall in Bhandup West and Kaledonia
in Andheri East. The company is also venturing into infrastructure
with the multi-service Vasai SEZ project.

A substantial proportion of HDIL’s land reserves come from the slum rehabilitation activities that the company undertakes in Mumbai, earning free space to construct apartments in lieu of free housing it provides for slum dwellers.