| Amit Bagaria, chairman, Asipac told reporters here on Tuesday, "The money is being raised from domestic high net worth individuals (HNIs), Non-Resident Indians (NRI) and financial institutions. We will invest Rs 2 crore to Rs 5 crore per project to facilitate architectural services, government clearances and layout formation." |
| He said there were many builders and developers with huge land banks. "But they do not have access to big private equity funds. The money provided by us helps them in obtaining all clearances. In turn, they will be able to tap funds to complete the projects," he added. |
| The company announced it is setting up a strategic business unit to offer investment banking and asset management services as well as procurement services to the realty sector. This is in addition to real estate development and project marketing services. |
| "In 18 months, we helped developers raise Rs 629 crore in equity funding without a dedicated team. Now we are creating a unit with a president and a team of four to tap the business," said Bagaria. The company has a mandate to raise Rs 561 crore of equity. |
| Indian real estate industry procures Rs 55,000 crore worth of raw materials annually and market for semi-finished and fully-furnished homes for over Rs 25,000 crore and there exists a potential to tap a significant share of the market," said Vikas Gupta, head procurement services, Asipac. |
| According to Bagaria, the company has an order book of contracts in hand for a fee income of Rs 316.40 crore and is projecting revenues of Rs 80 crore in FY 2009 and over Rs 170 crore in FY 2010. |
| Since inception in 1996, Asipac has worked on projects of over 375 million square feet valued at $23 billion. Today it has the sole selling rights for projects of 26.3 million square feet valued over $2.7 billion, he added. |
Top Section
Explore Business Standard