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Omshakthy plans to raise Rs 150-cr via private equity route

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Gireesh Babu Chennai
Last Updated : Jan 24 2013 | 2:11 AM IST

Chennai-based real estate developer, Omshakthy Agencies, is planning to raise around Rs 150 crore through the private equity (PE) route to support its proposed investment in a new mini-township project at Tirumudivakkam near Chennai. The company had earlier raised around Rs 30 crore from Fire Capital Fund Mauritius Private Limited for its Rs 60-crore township project near Chennai.

The company is looking at raising the funds for its proposed 150-acre gated community mini-township near Chennai city. The initial investment, including the land cost and development, would be around Rs 300 crore, of which 50 per cent would be raised through PE, said R Ramachanthran, chairman and managing director of Omshakthy Agencies.

“Our plans are to dilute around 50 per cent stake in the project. We are expecting Rs 3,500-crore sales revenues from the entire project, which would be executed in three phases. Development of Phase-I on 50 acre would commence next year,” he said.

The company had earlier seen a PE fund infusion into its gated community township project, Omshakthy Kanopus. The joint venture, Omshkathy Fire Reality (Private) Limited, has recently announced the launch of the approved residential plots on 40 acre.

Fire Capital has infused around Rs 30 crore in the 50:50 JV project, which had a total investment of Rs 60 crore. The sales revenue from the project, which has 675 units, is expected to be around Rs 150 crore.

This year, the real estate company is planning to launch two projects, a Rs 91-crore residential plot development near Padappai, near Chennai, and a duplex twin-house project in Avadi.

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The residential plot project would come up on 40 acre and would see an investment of around Rs 30 crore. The duplex venture at Avadi in Chennai, with around 900 units on 25 acre, would focus on the upper middle-class customers.

Next year, it would also launch a 2,500-unit budget homes project in Padapai, near Chennai, with an initial investment of Rs 50 crore, Ramachanthran added.

The company, at present, has a land bank worth around Rs 250 crore. With a turnover of Rs 100 crore last year, the completion of its two projects this year is expected to reflect on the performance with its turnover expected to touch Rs 300 crore.

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First Published: Jul 02 2012 | 12:45 AM IST

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