Construction Companies Being Bullish on Raising Capital Through IPO

March 22, 2007	(1 votes, average: 1 out of 5)  Loading ...
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Hindustan Construction Company Ltd. is planning an expansion through its newly formed real estate arm. It is raising Rs. 5000 crore for making investments in HCC Real Estates Ltd., through private equity participation, FCB issue and an IPO. The company is also looking forward to the prospects of establishing its own real estate fund for the country.

The company will use the proceedings to expand the real estate business in India and will take up the development of a land bank of about 5000 acres including the construction of exclusive IT parks and other office spaces and large townships.

There are plans to develop IT parks outside Mumbai apart from the areas like main Mumbai, Navi Mumabi, and Thane, says Ajit Gulabchand, Chairman and Managing Director, HCC. The company expects the IT Park to generate revenue over Rs 100 crore a year.

Another giant conglomerate which is thinking about its expansion is C&C constructions. The group is engaged in diverse range of construction related activities on a nationwide and global basis. It is raising Rs. 115-124 crore through a public issue.

The group plans to use the proceedings to float a special purpose vehicle (SPV) or joint venture (JV) investments for BOT project, capital equipment investment and augmenting working capital capacities.

At present, C&C is running three projects in the NH-57 East-west corridor stretch of a whopping Rs. 521 crore. Its JV partner is BSCPL (B Seenaiah & Co.), the company which has recently bagged a BOT road construction project under NHDP-III for the Kurali-Kiratput section.

With the Realty boom in India, the construction activities are fetching good value which is a clear indication of bright prospects for property developers and investors.

News Published Under:   Real Estate India, Real Estate Developers |

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