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Patch-up likely at Puravankara Projects

BS Reporter  |  Chennai/ Bangalore 

There seems to be a patch up on the anvil at Puravankara Projects, the
Girish Puravankara, one of the key persons responsible for growth of the company as its deputy managing director recently quit the company following some differences with promoters of the company, is likely to return to the firm.
According to industry sources, there are efforts for this patch-up as Puravankara is set to expand on several of its initiatives. Girish quit the company post the company's initial public offer in August 2006, through which they raised Rs 950 crore.
While Girish was not reachable, Ashish Puravankara, Director, said he has also been hearing in the industry about the possibility of Girish coming back to the company, but there has been nothing official from either side.
"We will have to see how this pans out," he added.
Industry sources also indicate that Girish, post his exit from Puravankara, has since started his own real estate firm and has been able to raise around Rs 100 crore to start with.
The of patch-up comes at a time when is poised for a Rs 1,000 crore hospitality group.
"We have the required land for this and we are negotiating with global hospitality chains for management contract. Discussions are in the final leg and should be capped up within this month," said Puravankara.
This foray is expected to be under a special purpose vehicle and the company is expected to raise around 90 per cent of the cost through private equity route. Prior to this foray, Puravankara in pact with Keppel of Singapore has built expansive residential complex in Bangalore.
has had to struggle to push through its IPO after having to cut the offer price and extend by five days for full subscription. The book-running lead managers, DSP Merrill Lynch, Citigroup and Kotak Mahindra Capital had to reduce the price band to Rs 400-450 from the earlier Rs 500-525.
Eventually, the company managed to raise around Rs 950 crore as against the targeted Rs 1,130 crore, from the issue which closed during August 2006.

First Published: Fri, January 04 2008. 00:00 IST