Bangalore-based realty firm Embassy Group is planning to raise about $500 million in an initial public offering. Embassy may seek approval from the capital-markets regulator within two weeks to sell the shares. The company picked Citigroup Inc, Nomura Holdings Inc and UBS AG to manage the IPO, the Bloomberg has reported, citing sources close to the development.
Embassy may face competition for investors’ cash from property companies including Lodha Developers Ltd and Sahara Prime City Ltd, as at least nine developers await regulatory approval to raise money, according to data compiled by Bloomberg.
The Bombay Stock Exchange Realty Index has lost 23 per cent this year, compared with a less than 1 per cent drop in the benchmark Sensitive Index. Embassy chairman Jitendra Virwani didn’t immediately return calls and messages left at his office. Debasis Ghosh, a spokesman for Citigroup in Mumbai, UBS’s Hong Kong-based spokesman Mark Panday and Nandini Goswami at Nomura in Mumbai declined to comment.
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