Parsvnath to set up SEZs in Bangalore, Mysore

Parsvnath Developers, a New Delhi-based real estate company, has identified Bangalore and Mysore to locate its two IT SEZs (special economic zones) in Karnataka.

The company wishes to build an IT SEZ at Dibbur village in Hessarghatta hobli near Bangalore on 27 acres and one at Srirangapatna near Mysore (on the Srirangapatna-Hassan road) on 120 acres of land, said Sanjeev Jain, managing director, Parsvnath Developers, while announcing his company's IPO plans here on Thursday.

"At present, we are awaiting clearances from the Centre. As part of the SEZs, we intend to construct hotels and IT parks (office space) for which we have development rights in accordance with the permitted land use. Our building or layout plans in relation to some of these projects are yet to be finalised and approved," he added.

For the IT SEZ at Bangalore, the company acquired the land before the realty boom at Rs 8 lakh per acre. For the SEZ in Mysore, it has acquired 70 out of the 120 acres at Rs 14 lakh per acre and has entered into a definitive agreement to buy the rest of the land.

Parsvnath Developers plans to spend Rs 83.36 crore for the Mysore IT SEZ, which will give the company 7.62 lakh square feet of saleable area. For the Bangalore project, final investments are being worked out.

To fund its various ongoing projects and expansions in the country, the company is entering the capital market to raise about Rs 1,000 crore.

The issue comprises a net issue to the public of up to 33,038,000 equity shares. Up to 2 lakh equity shares are reserved for subscription by the employees.

The IPO will constitute of 18.30 per cent fully-diluted post-issue paid-up capital. The price band has been fixed between Rs 250 and Rs 300. The IPO opens on November 6, and closes on November 10.