The Bangalore based real estate company, Embassy Property Developers Ltd. (Embassy) had filed for a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).

The company is looking to raise Rs. 2,400 crore ($522 million) and is also considering a pre-IPO placement of up to Rs. 1,175 crore ($250 million). Embassy plans to use the proceeds of the IPO to finance the ongoing as well as new projects, besides repaying loans. 

Embassy has recently entered into a joint venture with Azikaf Sdn Bhd, a member of the Emkay Group, of Malaysia for the development of MKN Embassy TechZone, a business park being developed in Cyberjaya, Malaysia, which is the first real estate development outside of India. The company is also planning projects in Siberia.

Embassy was advised by the Bangalore office of AZB & Partners. The team was led by Partner Anup Shah and Partner Srinath Dasari. Anup Shah who is a well known real estate specialist in Bangalore had an independent practice before merging with AZB. The merger proved to be beneficial which has led to AZB bagging most of the real estate deals out of Bangalore. Last year, the firm had also advised on the Prestige Estates IPO. 

UBS Securities and Nomura Financial Advisory, Bankers to the IPO deal are being advised by the Bangalore office of Amarchand and Singapore office of Clifford Chance.

The DRHP also lists 12 local firms who have provided expert legal opinions on title of land, the customary practice for real estate transactions. Since Embassy is developing projects outside India, Malaysian lawyers Sidek Teoh Wong & Dennis and Serbian law firm Tomislav Popovic are also advising the IPO.

Some observations after reading the draft red herring prospectus indicate that Embassy has spent Rs. 104.89 million ($ 2.3 million) as legal and professional fees for the last fiscal year. AB Mandanna, Vice President (Legal & Liaison) was incharge of the legal affairs at Embassy, who is a retired bureaucrat and has previously worked with local real estate companies in Bangalore.

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