Bangalore based Nitesh Estates is likely to raise Rs 550 crore by listing its
shares on the stock markets by early 2010. The company is expected to submit its
draft red herring prospectus to SEBI shortly.
The company is likely to dilute close to 30 per cent shareholding through the
Initial Public Offer (IPO). It has roped in Morgan Stanley and three Indian
banks for its proposed IPO and a fresh round of private equity infusion.
The proceedings are likely to be used for the construction of 19 residential
projects, a city centre mall in Indira Nagar in Bangalore and the proposed
267-room Ritz Carlton in Bangalore. Part of the funds is expected to be used for
acquisition of new JVs. The company works on the JV model to carry out its
projects.