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Business News/ Companies / People/  Supertech targets Rs2,500 crore IPO in a year: Chairman
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Supertech targets Rs2,500 crore IPO in a year: Chairman

Supertech targets Rs2,500 crore IPO in a year: Chairman

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New Delhi: Realtor Supertech Ltd plans to raise about Rs2,000-2,500 crore through an initial share sale in a year, a top executive said on Wednesday.

“We are in the process of appointing bankers. At present, we have appointed Knight Frank as consultant to do the valuation," chairman and managing director R. K. Arora told reporters.

Supertech, which clocked in a revenue of about Rs1,000 crore in 2009-10 and has projects worth about Rs10,000 crore, expects to dilute about 20% stake in the IPO, he added.

Noida-based Supertech has delivered about 33 million sqft of real estate projects so far and is currently constructing 70 million sqft mainly in towns near New Delhi, Arora said.

Supertech expects to conclude two private equity deals in one-and-a-half month, Arora said. “We are in talks with two PE players to raise a total of Rs500 crore in two projects," Arora said. Knight Frank is advisor for both PE deals.

About a dozen realty firms, including Emaar MGF, the Indian JV of Dubai’s Emaar Properties and Lodha Developers, have been waiting to launch IPOs in India to finance land acquisition and reduce debt, but fear of poor investor response had kept them at bay.

Oberoi Realty though had a successful listing on Wednesday with its Rs1,0000 crore IPO getting subscribed over 12 times and shares listed at about 9% premium to its issue price.

A steep rise in prices too has slowed home sales in the country, mainly in Mumbai, increasing pressure on developers. In Noida, which has Supertech’s main projects, an oversupply of housing projects has largely kept prices in check.

Arora said prices have marginally increased in the past two months in Noida and sales have not been impacted because of that.

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Published: 20 Oct 2010, 05:31 PM IST
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