Nitesh IPO gets Rs 60 cr from 4 anchor investors

MUMBAI: Bangalore-based real estate builder Nitesh Estates is understood to have roped in four anchor investors for its initial public offering, which opens for subscription on April 23 and closes on April 27.

According to sources in merchant banking circles, Halbis Capital, Nomura Capital, HDFC Mutual Fund and SBI Mutual Fund have pumped in close to Rs 60 crore — closing the portion allotted for anchor investors.

Halbis Capital and Nomura Capital have invested Rs 20 crore each, while HDFC Mutual and SBI Mutual Fund bought shares worth Rs 10 crore, sources said.

Nitesh Estates expects to raise over Rs 400 crore through the IPO. The price band for the issue has been fixed at Rs 54-56 a share. The company will use the funds to acquire joint development rights, fund existing and upcoming projects, repay loans and for other general corporate purposes.

Private equity fund AMIF I holds 14.4% of the pre-issue equity share capital in Nitesh Estates. Citi Property Investors holds 74% of the equity share capital of Nitesh Residency, the SPV developing the Ritz-Carlton brand hotel in Bangalore.

ICICI Securities, Enam Securities, Kotak Mahindra Capital and JM Financial are the book running lead managers to the issue.