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Puravankara Projects IPO to raise Rs 1,500 cr
Builders appear to be making a beeline for raising money through the IPO route. After Sobha Developers and Parsvnath, it’s the turn of Bangalore-based Puravankara Projects, a company which hopes to raise Rs 1,500 crore through an IPO, reports CNBC-TV18.
In early January, Puravankara Projects will float an initial public offer of 20 crore shares on the Bombay Stock Exchange. It’s expecting regulatory approval next month.
The developer will price its shares at Rs 650 to Rs 750 rupees each, which would give it between Rs 1,300 and Rs 1,500 crore. About a third of this will go towards repaying debt while the rest will fund the company’s expansion plans.
“We are currently operating in Kochi, Coimbatore, Chennai, Bangalore, Mangalore and Mysore. But we have plans to move to Pune, Noida and Gurgaon. We are definitely looking at more cities in the north. In fact we are looking at international markets also like Colombo and Dubai, where there are opportunities,” says Girish Puravankara, Deputy MD, Puravankara Projects
The Rs 600 crore company has a land bank of 70 million square feet and 7,500 apartments under construction, besides other projects by its joint-venture parnter Keppel Puravankara in which it holds a 49 percent stake.
Analysts seem optimistic about the issue. “The real estate sector is still untapped. There is a lot of potential within India as a whole. There are a number of Tier II and Tier III cities that need to be explored,” says Ram Chandani, Head South India operations, CB Richard Ellis.
The real-estate sector is growing by 30% a year and it appears that the property developers want to cash in on that growth. Other developers like DLF and Prestige Group are also waiting in the wings.
Source: www.moneycontrol.com
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