New Delhi, September 14: Real estate developer Jaikumar Constructions has received markets regulator Sebi’s go-ahead to float an initial public offering.
Jaikumar Constructions Limited, a well established real estate developer from Nashik, operates under the brand name “Parksyde”. As of date, the company has constructed and delivered possession of approximately 11.43 lakhs sq. ft. of carpet area of residential units.
The company has concentrated on developing luxury, affordable housing in the residential segment and have also recently ventured into development of commercial projects in Nashik.
The IPO will see sale of 79 lakh equity shares of the company, the draft red herring prospectus (DRHP) with the regulator showed. The company, which filed draft papers with Sebi in June, obtained its observations on September 10, latest updated with Sebi showed.
Sebi”s observations are very necessary for any company to launch public issues like initial public offer, follow-on public offer and rights issue. Proceeds of the IPO will be utilized for development of phase 1 of residential project Parksyde Nest in Nashik, further investment in subsidiary for part-financing the construction of “Parksyde Business Avenue”, repayment of outstanding unsecured loans and general corporate purposes.
In addition, the company intends to strengthen its capital base. It also expects to receive the benefits of listing of the equity shares on stock exchanges.
According to the company, despite their endeavour to continue with their long term business strategies, the Company may have to alter its short term strategies in the wake of the pandemic, which may require considerable changes in business plans, timelines and cash flow planning.