Maheshwari to float Rs 100cr IPO

Maheshwari Mega Ventures Limited of MPM-The Mall fame is planning to go in for a Rs 100-crore initial public offering (IPO) in the next six months.

The company plans to raise funds for its upcoming ventures, which include three shopping malls and a five-star hotel. These ventures will also be funded by debt and internal accruals.

Speaking to Business Standard, Girish Mallpani, chief executive officer of Maheshwari Mega Ventures Limited, said, "We are planning to raise money from the public for our new ventures. We will, therefore, be coming out with an IPO of approximately Rs 100 crore in another six months."

Maheshwari Mega Ventures is setting up a Rs 30-crore, 1,20,000-sq ft shopping mall called 'Bonsai'. The mall is slated to be opened in another six months at Himayatnagar.

"We have already spent Rs 20 crore, and an additional investment of Rs 10 crore is required for the mall," Mallpani said.

The anchor store at the mall will be Pantaloon's. Besides, the mall will have an automated car parking system for the first time in Hyderabad. The company has also tied up with Shringar Films Private Limited to set up a three-screen multiplex at the mall.

"We are also setting up a five-star hotel in the city for which we have tied up with an international hotel chain for management purposes. The 2.5 lakh-sq ft hotel will have 230 rooms. Besides, next to the hotel and within the same premises, we will be setting up a shopping mall that will run across 1.5 lakh sq ft of space," Mallpani said.

The Rs 125-crore venture is expected to be ready by the end of 2006 and will also have an automated car parking system.

"We are setting up another mall at Banjara Hills. Tentatively titled MPM Times Square, the Rs 60-crore mall will run across two lakh-sq ft of space and will be ready by 2007. The mall will also have a multiplex besides an automated car parking system," he added.