Magnum mulls foray into IT Parks, malls

With an additional land bank of 20,000 metres lying dormant with it, Magnum Ventures Limited is mulling over diversifying into other segments.

The Delhi-based manufacturer of paper has several options before it, including IT Parks, malls and residential projects.

"The UP Government has already sanctioned the permission for setting up an IT Park in the area where we have a land of 20,000 metres. We have several options before us but we have not decided upon anything as yet," said Parveen Jain, Managing Director of Magnum Ventures Ltd.

Of the total land bank of 62,000 metres, the company is utilising 10,000 metres of area for setting up a 4-star business hotel with 212 rooms in Sahibabad district near Delhi.

To be built at a cost of Rs 102.63 crore, the hotel will be managed by Carlson Group with which Magnum Ventures has entered into an agreement. The hotel will be branded as 'Country Inn & Suites by Carlson' and will begin functioning by early 2009.

Magnum Ventures is also modernising three of its paper manufacturing units by technological upgradation including replacement of plant and machinery used in the production of duplex boards, writing and printing paper, and allied sections such as chemicals and fibre recovery section at a project cost of Rs 50 crore.

Jain said that with the upgradation the company intends to make full utilisation of the 85,000 metric tonnes per annum capacity of paper.

The company is, meanwhile, entering the capital market with an initial public offer of 1.76 crore equity shares of Rs 10 each to fund its modernisation and hospitality projects. The issue, fixed between a price band of Rs 27 to Rs 30, will open on August 27, 2007 and close on August 31, 2007.

Jain added that the company expects to generate a fund of Rs 47.63 crore at a lower band and Rs 52.9 crore at a higher price band.