Oberoi Realty prices Rs 1,000-cr public float at Rs 253-260 a share

Oberoi Realty prices Rs 1,000-cr public float at Rs 253-260 a shareThe Oberoi Realty has decided a price band of 253 to 260 rupees per share for its 39.5 million shares in initial public offer and the firm is looking at raising a little over Rs. 1000 crore. This statement was said by a person familiar with the plans of the company.

The plan was to raise Rs. 1500 crore earlier but then revised down because of the improved cash reserves owing to better response to the recently launched projects. And the company has decided to lower its plans now.

A spokesman for the company declined to the comment on the size issue but she also said there was no change in the plan of the company to dilute a 12% stake through this issue.

The analysts of the real estate said the company might have cut the size of the issue because of its valuation like other realty companies. From the perspective of the stock market it seems to be an appropriate time for hitting the market. The realty market is sluggish and the volume is low, there is resistance at the higher price.