HCC to launch IPO for Lavasa project, may raise up to Rs1500 cr

HCC to launch IPO for Lavasa project, may raise up to Rs1500 cr
PTI
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First Published: Wed, Jan 21 2009. 04 04 PM IST
Updated: Wed, Jan 21 2009. 04 04 PM IST
New Delhi: Real estate and infrastructure player Hindustan Construction Company (HCC) plans to launch an initial public offering (IPO) for its hill station project Lavasa and raise between Rs1,000-1,500 crore by the end of 2010.
“We are looking at October 2010 for launching the IPO. All our efforts are geared to bring the IPO around that time. The size of the offering would be 10% of the then valuation of the project (Lavasa) which currently stands at Rs10,000 crore,” Lavasa Corporation President Rajgopal Nogja said.
The company also announced that it has formed a joint venture (JV) with Space Investment Co LLC of America to set up an entertainment centre based on space technologies with an investment of Rs400 crore.
According to Nogja the valuation of the Lavasa project could by 2010 go up to Rs15,000 crore as people would start living in the township by the end of the current year itself.
“The quasi-equity of a total of 4.5% held by three banks - Axis Bank, Allahabad Bank and Bank Of India would be converted into equity at the time of the IPO,” he said adding that these banks have together invested Rs450 crore to acquire the stake at the current valuation of Rs10,000 crore.
“While Axis Bank has 2.5% in the company, BoI and Allahabad Bank hold 1.5% and 0.5% each. These would be converted in to equity at the time of the IPO. If in case, the initial offer does not happen, the conversion would take place at the end of 5 years,” Nojga said.
Buoyed by the sale of all its 1,400 apartments and villas in the first phase of the township, the company has already started work for the phase II and plans to complete the project by 2016 instead of 2020 as scheduled earlier.
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First Published: Wed, Jan 21 2009. 04 04 PM IST