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Kumar Urban to raise $800 mn via pvt placements

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Press Trust of India New Delhi
Last Updated : Jan 21 2013 | 1:47 AM IST

Awaiting Securities and Exchange Board (Sebi) clearance for an initial public offer (IPO), the Pune-based realty firm Kumar Urban Development today said it is planning to raise up to $800 million through private equity placements in various special purpose vehicles (SPVs) next fiscal.

"We are almost close to signing a deal with an overseas private equity firm for raising up to $100 million.

The deal is likely to be signed in April," company chairman and managing director Lalit Kumar Jain said.

Jain also said the company plans to raise a total of $800 million next fiscal by diluting stakes in various SPVs created to execute residential and commercial projects across Mumbai, Pune and Bangalore.

"We are currently developing projects spanning over 3.6 million sq ft area in these cities and will soon be launching 12 more projects over 15 million sqft area," he said.

In the realty business for the past four decades, Kumar Urban has land banks in Hyderabad and Nagpur where it plans to develop residential projects.

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Kumar Urban is awaiting approval for an IPO from Sebi after filing the draft red herring prospectus last October.

"We plan to raise Rs 450 crore for land acquisitions, construction and for repaying some loans. We are waiting for Sebi nod," Jain said.

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First Published: Feb 08 2010 | 12:03 PM IST

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