INRnews - Indian Real Estate News

MGDL's QIP was opened for investors on September 29th and closed on October 4, 2006. The placement received a strong demand of more than US $ 160 million at a price of Rs. 800 per share and above. The placement received participation from a wide segment of investors such as FIIs, Mutual Funds, Banks and Insurance companies. The QIP was priced at Rs. 800 per share, which was around 1% premium to the two-week average market price prior to the issue opening date.

MGDL is a Mahindra & Mahindra Group company and is a leading real estate development company in India currently focused on residential projects and integrated infrastructure development in SEZs. It has so far developed over 3.54 million sq. ft. of residential and commercial space excluding SEZs, and is currently developing residential and commercial space in Mumbai, Chennai, Pune, Gurgaon and Pimpri. MGDL has also developed Mahindra World City, Chennai, which is the only operational SEZ with private sector participation. MGDL is now planning to develop and has received in-principle/formal approvals for SEZs at Jaipur, Karla in Maharashtra and Thane near Mumbai.

Kotak Investment Banking acted as the Global Coordinator and Sole Book Runner for this QIP.

Speaking on the occasion, Mr. Arun Nanda, Vice-Chairman, Mahindra Gesco Developers Limited, said: "We are extremely pleased that large institutional investors have appreciated our inherent strengths and reposed faith in our Company. The positive response to the issue reflects the confidence that global and domestic institutional investors have in our Company and its integrated business model".

Ms Falguni Nayar, Managing Director, Kotak Investment Banking, said, "MGDL's QIP issuance is the largest such issue from India under the new SEBI regulations and one of the largest issuance in the real estate and SEZ sector. The Issue has reaffirmed global investor interest in the Company and firmly established QIPs as a preferred route of large size equity financing for listed companies".

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About The Mahindra Group
The US $3 billion Mahindra Group is among the top 10 industrial houses in India. Mahindra & Mahindra is the only Indian company among the top five tractor manufacturers in the world and is the market leader in multi-utility vehicles in India. It has a leading presence in key sectors of the Indian economy, including trade and financial services (Mahindra Intertrade, Mahindra & Mahindra Financial Services Ltd.), automotive components, information technology & telecom (Tech Mahindra, Bristlecone), and infrastructure development (Mahindra GESCO, Mahindra Holidays & Resorts India Ltd., Mahindra World City). With around 60 years of manufacturing experience, the Mahindra Group has built a strong base in technology, engineering, marketing and distribution. The Group employs around 30,000 people and has eight state-of-the-art manufacturing facilities in India spread over 500,000 square meters. The Mahindra Group has ambitious global aspirations and has a presence in 20 countries spread across four continents. Mahindra products are today available in every continent except Antarctica. M&M has made strategic acquisitions of plants in China and the United Kingdom, and has 2 assembly plants in the USA. Its global subsidiaries include Mahindra Europe Srl. based in Italy, Mahindra USA Inc. and Mahindra South Africa. M&M has entered into partnerships with international companies like Renault, France, and International trucks, USA.