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Bangalore Based Realty Player Targets Rs 5,000 crore biz by 2015
Bangalore-based realty player Nitesh Estates, which listed its shares on the bourses on Thursday, expects to clock in nearly Rs 5,000 crore by end-2015 on the back of a strong pipeline of residential and commercial projects. “We target a total revenue of Rs 4,000-5,000 crore within the next four to five years,” Nitesh Estates managing director Nitesh Shetty told reporters after the firm’s listing ceremony.
Presently, Nitesh Estates has almost 20 projects in the pipeline with a total size of 19 million square feet. It plans to diversify operations into development of shopping malls and will expand to cities like Chennai, Goa and Hyderabad, he said. The company, which listed over 14.58 crore shares on the BSE and NSE to raise around Rs 405 crore, has set its focus on segments such as office buildings, residential, hotels and other retail projects in South India, Shetty added.
In FY11, the company hopes to achieve a revenue of Rs 200 crore. Last fiscal, its revenue stood at Rs 95 crore. Shares of Nitesh Estates listed with a discount of 7.40 per cent against its issue price at Rs 50 on the Bombay Stock Exchange (BSE). Shares of Nitesh Estates after opening weak on the BSE fell 10.55 per cent to a low of Rs 48.30.
On the National Stock Exchange (NSE), the stock opened at the issue price of Rs 54, but later fell to a low of Rs 49.10, down nine per cent. “The issue proceeds will be utilised to fund existing subsidiaries and the associate company for repayment of loans, redemption of debentures and for general corporate purposes,” Shetty said.
The company’s total debt currently stands at Rs 180 crore. Incorporated in 2004, Nitesh Estates is primarily engaged in the development of residential projects in Bangalore.
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