Kolte-Patil Developers plans to raise Rs275 cr via IPO

Kolte-Patil Developers plans to raise Rs275 cr via IPO

New Delhi: Real estate firm Kolte-Patil Developers Ltd plans to raise about Rs275 crore from the capital market to fund its land acquisition and proposed future projects.

“We are planning to raise about 275 crore from the Initial Public Offer (IPO)," Kolte-Patil Group CEO Hardeep Dayal said here.

The public offer comprises 1.9 crore equity shares of Rs10 each that would be issued through a 100% book building process. The net issue would constitute 25% of the post issue paid-up equity capital of the company.

The shares would be issued at a price band of Rs125-145. The issue would open on 19 November and close on 22 November.

Kolte-Patil has earmarked an investment of Rs264 crore for completing the acquisition of 21.58 million sqft of land.

“We will invest Rs264 crore for completing the formalities for acquiring 21.58 million sq ft of saleable area," Dayal said.

From the IPO proceeds, Rs176 crore would be utilised for this purpose, he said, adding the remaining would come from internal accrual. “The balance amount from the IPO will be kept for construction activities of the current and proposed projects," he added.

The company has a 50:50 joint venture with ICICI Venture Fund Management Company for developing two integrated townships and one IT park.

“ICICI Venture is our partner in developing two townships of 400 acres and 80 acres in Pune. We are also constructing an IT park with them," the Group CEO said

Kolte-Patil is a developer of residential, commercial complexes, IT parks and integrated township projects. It currently has a land bank of 39.88 million sq ft area (about 755 acres) and out of this, 17.80 million sq ft of saleable area is under construction, Dayal added.

As on September 30, the company had developed about 4.01 million sq ft of saleable area.

Further, it was developing 28 projects that includes 24 in Pune and four in Bangalore.

The company’s projects are currently limited to Pune and Bangalore only, he said, adding “we are planning to expand our activities to Chennai, Hyderabad, Nagpur, Nasik, Goa, Mysore and Aurangabad."

The company had a total consolidated income of Rs252.44 crore in 2007 fiscal with a an adjusted profit after tax of Rs83.56 crore.