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Lavasa to raise Rs 2,000 cr via IPO

BS Reporters  |  Mumbai 

Company (HCC) today said its arm Lavasa Corporation, would raise up to Rs 2,000 crore through an initial public offering.

The company’s board has approved the plan, making Lavasa the first township project in the country to go for an Though the company did not divulge how much stake it would dilute and when it would tap the markets, analyst reports said the issue could happen in October-November.

HCC holds 65 per cent in Lavasa through its wholly-owned subsidiary, HCC Real Estate. Eight banks, including Bank of India, Axis Bank, ICICI Bank and financial institutions, have 11 per cent stake in Lavasa, through convertible debentures. Avantha Group, Venkateshwara Hatcheries and some private investors hold the remaining equity.

Lavasa’s revenue rose 94 per cent to Rs 181 crore during the June quarter, while net profit jumped 87 per cent to Rs 49 crore.

“Lavasa’s will unlock its true value, thereby enabling HCC to be one step closer in realising its vision of creating a hill city development in India which offers infrastructure better than that available in an average Indian city,” said Ajit Gulabchand, chairman and managing director of HCC.

Lavasa, near Pune, is a three-hour drive from Mumbai. The hill city has been planned for around 300,000 residents and a tourist inflow of two million per annum.

The master plan has five towns and the company has already started operations in its first town, Dasve. Dasve is expected to be functional by December 2011. “Work has also commenced on the second town and the company has advanced its plans for the next phase,” the company said in a release.

According to a report by Elara Securities, has already sold 1,850 apartments and villas, spanning over 3.5 million square feet and is confident of handing over keys to buyers by March 2011.

First Published: Sat, July 31 2010. 01:38 IST