On the first day of Housing Development and Infrastructure (HDIL) IPO, the issue was 0.26 times subscribed. It received total bids for 76.91 lakh shares from the total issue size of 2.97 crore equity shares. The total bids in the Qualified Institutional Buyers (QIBs) category were 65.81 lakh shares. In this category, the Domestic Financial Institutions bid for 30.81 lakh shares and Mutual Funds bid for 10 lakh shares. The Foreign Institutional Investors bid for 24.9 lakh shares.
The Non Institutional Investors bid for 9.33 lakh shares. The Retail investors bid for 1.76 lakh shares, of which 1.57 lakh shares were bid at cut off price and 17,166 shares were bid at price.
The issue, having price band between Rs 430 - 500 per share, will close on 3 July 2007.
Housing Development and Infrastructure is a real estate development company in India, with significant operations in the Mumbai metropolitan region.
HDIL focuses on real estate development, including construction and development of residential projects and, more recently, commercial and retail projects, slum rehabilitation and development, including clearing slum land and rehousing slum dwellers, and land development, including development of infrastructure on land which the company then sells to other property developers.
HDIL has an integrated in-house development team which covers all aspects of property development from project identification and inception through construction to completion and sale.
HDIL has around 45.5 million square feet (sq. ft.) under construction and an additional 66.6 million sq. ft. in various stages of planning. Much of this developable area has come from the firm's slum rehabilitation activities, under which a builder gets to build additional space in return for the free housing given to slum dwellers.
The firm has undertaken nearly 40% of the slum rehabilitation projects in Mumbai city.
HDIL's land bank of 2,500 acres spread across Mumbai, Kochi and Hyderabad has been valued at Rs 21,500 crore. The valuation was done by real estate consulting firms Knight Frank India and Cushman Wakefield India.
HDIL has development rights to nearly one million sq. ft in Mumbai's Bandra Kurla complex, in lieu of the slum clearance work it undertook in the area. HDIL had sold part of this space to Gujarat's Adani Group in May 2006 at Rs 2,250 crore, making this India's biggest land deal.
HDIL plans to enter the hospitality space through a joint venture for a seven-star hotel on Mumbai's Juhu beach.
Currently, 50.7% of HDIL's business comes from infrastructure development business, while the residential complexes segment contributes 18.4% and commercial business 5.9%, with 4% coming from the retail segment. Slum re-development activities account for the rest.
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