Assetz files confidential IPO papers with Sebi; plans to raise around ₹1,200 crore

Real estate developer Assetz Ltd has confidentially filed draft papers with the Securities and Exchange Board of India (Sebi) to raise around ₹1,200 crore through an initial public offering (IPO), according to a public notice issued by the company. 

The proposed issue would mark the stock market debut of one of Bengaluru's fastest-growing residential developers, backed by Singapore-based investment fund AGP Partners. 

In the public notice issued on Saturday, the company said it has filed the pre-filed Draft Red Herring Prospectus (DRHP) with Sebi and the stock exchanges in connection with the proposed IPO of its equity shares on the main board. 

According to people familiar with the matter, the IPO size is estimated at around ₹1,200 crore. JM Financial, BofA Securities India, and Motilal Oswal Investment Advisors have been appointed as the book-running lead managers for the issue. 

Under Sebi's confidential pre-filing mechanism, companies can keep their draft offer documents out of the public domain until the regulatory review reaches a more advanced stage. Consequently, details related to the issue structure, financial performance, valuation, and listing timeline are not yet publicly available. 

Assetz has adopted an institutional-style operating and governance framework, with projects structured through special purpose vehicles (SPVs) to enhance project-level transparency and governance, according to real estate consultants. 

Over the years, the Bengaluru-based developer has raised project-level funding from investors and financial institutions, including JP Morgan, Aditya Birla Capital, Motilal Oswal Alternates, and HDFC Ltd. The company has raised and repaid more than ₹1,000 crore in capital, consultants said. 

The company is led by Managing Director Akshay Kishore Dewani and Executive Director Sunil Kumar Pareek, with oversight from a board comprising non-executive and independent directors. 

Singapore-based AGP Partners is a key shareholder in Assetz. Ben Cameron Melville Salmon, associated with the investment fund, serves as a non-executive director on the company's board and is not a promoter. 

Riding strong housing demand in Bengaluru, Assetz has accelerated land acquisitions to expand its development pipeline. The company recently acquired around 200 acres across the city's eastern and northern corridors. 

Overall, Assetz has tied up nearly 550 acres of land and has a development pipeline of approximately 4.5 crore square feet, largely through joint development agreements, according to people aware of the matter. The developer is also evaluating expansion into the Mumbai Metropolitan Region (MMR) as part of its broader growth strategy, the sources added.