Lavasa gets Sebi nod for Rs 2,000-cr IPO

Hindustan Construction Company (HCC) on Friday said its subsidiary, Lavasa Corporation, has been given the green signal for a Rs 2,000-crore initial public offer (IPO) by the Securities and Exchange Board of India (Sebi).

“Lavasa Corporation Ltd, subsidiary company of HCC, has received observation letter from Sebi for its proposed IPO,” Hindustan Construction Company said in a filing to the Bombay Stock Exchange.

In September, Lavasa Corporation had filed a draft red herring prospectus (DRHP) with the market regulator for the proposed IPO.

The IPO may hit the market by November-December, depending on the date of receipt of clearances from regulatory authorities, HCC Chairman Ajit Gulabchand had said earlier.

The real estate developer has roped in ICICI Securities, Kotak Mahindra Capital Company, Morgan Stanley India and Axis Bank as the book running lead managers for the issue.

HCC holds a stake of about 65 per cent in Lavasa, while Gautam Thapar-controlled Avantha Group is the second-largest shareholder with a 16 per cent stake.

Other shareholders include Venkatesh Hatcheries with a 13 per cent stake and Pune-based investor, Vinay Maniar, who holds a 6 per cent stake in the company.

Lavasa is a planned hill city being developed by HCC near Pune. The master plan for Lavasa was drawn up by internationally renowned design consultant HOK of the USA.

The hill township has been planned to house a permanent population of around 300,000, as well as the expected arrival of 2 million tourists every year. The first of the five towns — Dasve — is slated to be ready by 2010-11.

Shares of HCC were being traded at Rs 59.80 on the Bombay Stock Exchange on Friday, up 2.57 per cent from the previous close.