IVR Prime to foray into Gujarat

Hyderabad-based IVR Prime Urban Developers, a subsidiary of IVRCL Infrastructures and Projects Limited, is planning to foray into Gujarat. The company is eyeing residential properties alongwith plans to set up business hotels in the state.

Sources close to the development said that IVR Prime is also open to projects like integrated townships and hotels in the upcoming SEZs in Gujarat. However, IVR Prime's Managing Director, E Sunil Reddy said, "We would definitely want to explore new markets."

IVR Prime's business primarily focusses on residential developments, integrated townships, commercial projects, including hotels, retail malls, IT parks and other projects across the country.

Its land reserves consist of nearly 2,500 acres including 75.45 million sq ft of saleable area, in cities like Hyderabad, Vishakhapatnam, Chennai, Bangalore, Pune and Noida.

In its ongoing projects, the company is setting up a mall and an IT Park at Gachibowli, Hyderabad and another project at Jigani.

To finance these projects, the company is entering the capital market on July 23, 2007 with a public issue of 14,150,000 equity shares of Rs 10 each.

Priced between Rs 510 and Rs 600 per equity share, IVR Prime intends to raise Rs 719 crore to Rs 846 crore through the issue which closes on July 26, 2007.

Reddy added that part of the proceeds from the issue will go in repayment of a loan taken from Karnataka Bank Limited and payment of the development right costs of its parent company, IVRCL.

For fiscal 2007, IVR Prime made a turnover of Rs 147.82 crore, with a bottomline of Rs 20.67 crore. Post-issue, IVRCL's share in IVR Prime will get diluted by 17.65 per cent to stand at 62.35 per cent.