On first day of IVR Prime Urban Developers IPO the issue was undersubscribed, with total bids for just 13,340 shares from total issue size of 1.41 crore shares.

There no bids in the qualified institutional buyers (QIBs) category and non institutional investors category.

The retail individual investors bid for 13,340 shares as against 42 lakh shares allotted for this category.

The issue will close on 26 July 2007 and the price band has been fixed at Rs 510 to Rs 600. The company would raise Rs 721 crore at the lower end and Rs 849 crore at the upper end.

IVR Prime is a subsidiary of IVRCL Infrastructures and Projects. The company focusses on integrated townships, residential developments including homes, commercial projects, retail malls, IT parks and other projects in various parts of India including cities of Hyderabad, Visakhapatnam, Chennai, Bangalore, Pune and Noida.

The parent firm, IVRCL holds 80% in IVR Prime and its holding will come down to 62.35% after the IPO.

IVRCL, which is into a whole range of infrastructure projects from power to roads, reported 52.17% in net profit to Rs 141.46 crore in the year ended March 2007 over March 2006. Sales jumped 51.56% to Rs 2305.88 crore in the year ended March 2007 over March 2006.

IVR Prime Urban Developers, is investing Rs 300 crore in setting up a mall and an IT Park at Gachibowli, Hyderabad. The project will be funded through a mix of internal accruals and debt and is estimated to complete in 36 months. The company has appointed Bentel & Bentel, a South African architect firm, for designing the project, and Old Mutual of South Africa has been appointed for advising on property and lease management. The mall is proposed to have a multiplex, food courts and an entertainment plaza.