IDEB Projects gets $32 mn FDI

IDEB Projects (IDEB), a Bangalore-based engineering construction and property development company, has received a private equity of $32 million (Rs 150 crore) from Samsara Capital, USA, and Fortune Partners of Singapore.

"This funding will help us scale up our business rapidly by building land banks in 6-8 cities," said Harkirat Singh Bedi, managing director of IDEB group of companies.

At present, the company has a construction business order book of Rs 1,100 crore and is developing over 8 million square feet of real estate projects in Bangalore, Chandigarh, Goa, Jaipur, Mysore, Pune and Uttaranchal.

IDEB has been involved in the construction of infrastructure projects like roads, bridges, build-operate-transfer (BOT) projects, high-rise buildings, mass housings, elevated and intricate RCC structures and treatment plants since 1998.

The company, according to Bedi, is building a four-acre IT Park in Dehradun in a joint venture (JV) with the state government through State Industrial Development Corporation, Rs 165 crore design and build contract for Delhi Metro for an elevated viaduct of 4.55 km, and five elevated stations for Phase II of the Delhi Mass Rapid Transport System in a joint venture with Shanghai Urban Construction Group.

After the fund infusion, the company is targeting consolidated revenues of over Rs 1,500 crore in 2007-08. The company is expected to achieve consolidated revenues of about Rs 550 crore in 2006-07 from its engineering construction and real estate businesses. It is looking an IPO in 2008-09, Bedi said.

"Some of the IDEB landmarks include Sigma Soft-Tech Park in Whitefield (Bangalore), Sigma Mall on Cunningham road (Bangalore) and Springfields, a 551-apartment residential complex on Sarjapur road, Bangalore, Villagio Toscana, Pune and Doon Cyber Towers, Dehradun," Bedi said.

Bharti Gupta Ramola, executive director of PricewaterhouseCoopers, financial advisers to the company said, "IDEB represents an excellent example of medium-sized construction and real estate companies growing rapidly to address the huge demand in the country. This deal will enable them to further professionalise and grow far more rapidly to become a leading player."