JP Infra to raise Rs 200 crore

Company is in advance stages of talks with a private equity fund.

Ahmedabad-based realty player JP Infrastructure Pvt Ltd (JPIPL) is in advance stages of talks with a leading PE fund to raise close to Rs 200 crore.

The company is also planning to come out with an initial public offer and had appointed Cushman & Wakefield in December last year for valuation of its assets.

"The net equity value of JPIPL is about Rs 2,000 crore as per C&W report. Looking at the current volatility in the stock market, JP Infrastructure is aiming to rope in PE funds till the market becomes stable for IPO," said sources close to the development.

The realtor is aiming to divest about 10 per cent, sources said. The company will have six months to one year's time to come out with an IPO while making way for the PE firm to exit.

Meanwhile, JP Infrastructure is planning a mega township project in Ahmedabad. It is setting up retail malls in Vadodara and Surat besides earmarking about 47,500 sft at Lower Parel in Mumbai where it aims to set up its corporate park.

C&W had carried out assessment of 10 of its upcoming projects. These include Iscon Platinum Mall at Bopal on SP Ring Road spread in about 300,000 sft , two five star hotels in Shahibaug and Bopal, a three-star hotel on SG Highway, a mixed used development project in Jaipur, which includes a five star hotel and retail mall, a corporate business park in Ahmedabad.