Indian real estate major, Puravankara Projects Ltd has said that it has fixed the floor price of Rs. 80 for the proposed issuance of equity shares through the institutional placement programme (IPP).

The small-cap real estate developer already has equity capital of Rs 106.74 crore with shares with a face value of Rs 5. The shares of the company had underperformed the market during the previous 12 months, falling 6.62 per cent compared to a rise of 5.76 per cent by Sensex. The shares have fallen 9.01 per cent during the previous quarter compared to a rise of 4.07 per cent in Sensex.

The floor price of Rs 80 per share is a discount of 16.62 per cent to the stock's closing price of Rs 95.95 as on Tuesday, 21 May 2013. The price is also 11.21 per cent discount to the market price. The company has proposed to sell 2.15 crore equity shares to institutional investors on Thursday and it had set a price band of Rs 80 to Rs 85 per share for the IPP. If the issue is oversubscribed, the company has the option to allot additional 21.56 lakh shares to eligible qualified institutional buyers (QIB).