Real estate developer BPTP today said it plans to raise around Rs 1,500 crore through an initial public offer (IPO) by early 2010-11.
“We have applied to the Securities and Exchange Board of India (Sebi) for approval. We hope to launch our IPO of Rs 1,500 crore early next fiscal,” BPTP Managing Director Kabul Chawla said.
The company, which has a net worth of Rs 1,600 crore, is hoping to clock a top line of Rs 1,000 crore and profit after tax of Rs 200 crore in FY10.
The company plans to pre-pay its Rs 325 crore debt from the issue proceeds, while Rs 500 crore has been earmarked for government use (conversion of land), he said.
The realty major has a consolidated debt of Rs 900 crore.
In 2011, Rs 150 crore will come up for repayment and the year after Rs 600 crore, Chawla said, adding “though we are not stressed in terms of debt, we plan to pre-pay Rs 325 crore out of the issue proceeds”.
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JP Morgan and SSKI are the book running lead managers (BRLMs) to the issue.
The company, which is primarily into mid-housing development, also has four special economic zone (SEZ) projects but, is currently going slow on them.
“Given prevailing market conditions, we have deferred activity on our SEZs so as not to over leverage our balance sheet,” Chawla said.
Going forward, BPTP might explore the option of converting these SEZs into residential use, Chawla said.
“We have the option of converting our four IT SEZs, at Noida, Greater Noida, Gurgaon and Faridabad, for residential purposes. We might exercise this option if the market conditions so demand,” he said.
On its focus on the national capital region (NCR) market Chawla said: “There is tremendous potential here and we intend to continue focussing on this region.”
Besides NCR, the company has one project in Hyderabad spread over 10 acres, which it plans to take up at an appropriate time.
BPTP has a land bank of 1,860 acres. It has 37 million sq ft of ongoing projects and has sold 31 million sq ft, worth Rs 5,500 crore, so far. Its receivables stand at Rs 2,500 crore.
JP Morgan and Citi currently hold 12 per cent stake in the company while, Merrill Lynch has 49 per cent stake in one of its Special Purpose Vehicle (SPV) — Vital.
At present, Citi Properties holds 50 per cent stake in its Faridabad SEZ SPV, 17 per cent in its Noida SEZ SPV and 43 per cent in its Greater Noida SEZ SPV.