Tuesday, July 24, 2007


Type of Issue : Book Built
Issue Opens: 23 July, 2007
Issue Closes: 26 July, 2007
Issue Size : 14,150,000 (No. of Shares)

Lower Price Band: Rs.510
Upper Price Band: Rs.600
Total Issue Size: Rs.849 Crores

Application Multiple: 10 and in multiples there off starting with at least 10 shares.

Maximum Shares: 160 (for Retail)

Information URL : http://www.ivrprime.com/
Prospectus URL : http://www.sebi.gov.in/dp/ivrprime.pdf

Company Details :
Email : investors@ivrprime.com
Contact Details : 914023495000 /914023495215 (fax)

ISSUE Description:
Company Background:

IVR Prime Urban Developers Ltd, a subsidiary of IVRCL Infrastructure and Projects Ltd, focuses on integrated townships, residential developments including affordable homes, and commercial projects such as hotels, retail malls and IT Parks. The company’s ongoing projects are in Chennai (47.62msf), Pune (9msf), Noida (6.73msf), Visakhapatnam (4.71msf), Bangalore (4.40msf), and Hyderabad (2.99msf).

As on June 21, the company claims to have a land reserve of 2,478.85 acres, consisting of about 75.45 million square feet (msf) of saleable area in Hyderabad, Visakhapatnam, Chennai, Bangalore, Pune and Noida. Of the total land reserve, 54.57 per cent (1,352.82 acres) are located in Chennai.

Of the net proceeds of the issue, the company intends to utilise Rs.57.37crs for the Jigani project in Bangalore, Rs.334.71crs for the IT Park and a mall project at Gachibowli in Hyderabad, Rs.147.18crs for repayment of loan to the parent company, Rs.41.96crs for loan repayment to the Karnataka Bank and Rs.85.70crs for payment of the cost towards acquiring development right from the parent company. Focus of the company will be on affordable housing in the sub-Rs20lakh range, and 70 to 80 per cent of the land reserve would be utilised for this purpose.

IVR Prime’s parent company, IVRCL is an integrated construction and development company with 3,851employees. The company is involved in a wide variety of projects ranging from commercial buildings and industrial structures to infrastructure construction, including construction of water supply facilities and environmental projects, roads, bridges, and power and transmission facilities. As on March 31, 2007 (unconsolidated), IVRCL’s total income stands at Rs.23,646.57mln and its PAT is at Rs.1,414.62mln.

Key Financials for the year ended March 31, 2007
Revenue Rs.1,478.27 Mln, PAT Rs.206.79Mln, EPS Rs.4.60, RoNW 25.88%


Besides IVR Prime’s land reserves, it’s major strength lies in the execution capabilities of its strong parentage namely IVRCL. Apply aggressively.