This real estate developer wants to raise ₹1,200cr via IPO
What's the story
Bengaluru-based real estate developer Assetz is gearing up for an initial public offering (IPO) of ₹1,200 crore. The company has filed its draft red herring prospectus (DRHP) confidentially. The proposed IPO will be a mix of fresh equity issuance and an offer for sale (OFS) by existing shareholders. JM Financial, BofA Securities India, and Motilal Oswal Investment Advisors are the lead managers for this issue.
Market debut
Institutional backing and governance structure
The IPO will mark the public debut of one of Bengaluru's fastest-growing residential developers.
The company has a strong institutional-style operating and governance structure, with its projects structured through special purpose vehicles (SPVs).
This provides greater transparency and governance at the project level.
Over the years, Assetz has raised capital at the project level from investors such as JPMorgan, Aditya Birla Capital, Motilal Oswal Alternates, and HDFC Ltd.
Future prospects
Aggressive expansion in project pipeline
Led by Managing Director Akshay Kishore Dewani and Executive Director Sunil Kumar Pareek, Assetz has been aggressively expanding its project pipeline.
The company has acquired around 200 acres recently to strengthen its presence in Bengaluru's high-demand eastern and northern corridors.
Overall, Assetz has tied up around 550 acres with a development pipeline of about 4.5 crore square feet, largely through joint development arrangements.