Hyderabad: Indu Projects Ltd, an infrastructure development company executing projects worth around Rs16,500 crore, got three US-based realty private equity (PE) investors to fund more than Rs450 crore in equity in three of its investment vehicles set up to finance these businesses, ahead of a possible initial public offering (IPO) in the first half of 2008.
The company had previously raised two rounds of angel and venture funding: Rs99 crore from Nimmagadda Prasad of Matrix Laboratories Ltd,his friends and associates,and Rs150 crore from Citigroup Venture Capital International Ltd.
“This time, three US-based PE investors have agreed to invest Rs220 crore, Rs201 crore and Rs32 crore in three of our SPVs (special purpose vehicles), respectively. We have signed agreements with these PE firms and expect the funds to flow in from next month onwards,” said Indu Projects’ managing director and chief executive, I. Syam Prasad Reddy, declining to name the three investors.
Indu’s promoters and associates hold around 80% in the company and Citigroup Venture has around 9%.
The company is currently executing six integrated townships in Andhra Pradesh and Karnataka, two information technology (IT) special economic zones (SEZs) in Hyderabad and Nagpur, a biotechnology park near Hyderabad, a health city in South India, four agro food parks in AP and a highway project in Tamil Nadu on a build-own-transfer basis.
The IT SEZ coming up over 150 acres near the new International Airport in Hyderabad for Rs5,500 crore, the health city estimated at around Rs5,000 crore and the integrated township at Bachupally on the outskirts of Hyderabad at Rs2,200 crore, are the key projects, said Reddy.
He estimated that the 15 SPVs running the projects would require close to Rs1,500 crore in PE funds. “But the PE fundraising would be staggered and some of our SPVs may need PE funds during the next fiscal,” Reddy added.
Indu Projects is evaluating plans to sell shares in an IPO and is in talks with investment bankers to manage the share sale, he said.
“We are likely to take a decision on the IPO at the next board meeting scheduled for September,” Reddy said, and added, “The IPO, if approved by the board, for around Rs1,000 crore would take place only during the first half of next year.”