Hyderabad realty firm plans IPO

The trying times at the stock markets have not deterred the infrastructure and realty companies from approaching the capital markets.

Hyderabad-based infrastructure and real estate company Indu Projects (IPL) is planning to launch a initial public offer (IPO), in the range of Rs 700 crore-Rs 1,000 crore, in the next couple of months.

The company is in the process of submitting a draft red herring prospectus (DRHP) to the Sebi this week.

When contacted, I Syam Prasad Reddy, managing director of Indu Group, declined to share details about the amount to be raised and valuations, but said, "We are in the process of filing the DRHP and are working on the IPO amount and date."

The company is talking to private equity players for a pre-IPO placement, sources said. DSP Merril Lynch, IDFC, SSKI and I-Sec are the merchant bankers for the IPO.

Indu Projects reported revenues of around Rs 567 crore for the current financial year. Its total order book stands at Rs 13,000 crore, including Rs 2000 crore from infrastructure projects and nearly Rs 11,000 crore from real estate. The company has a land bank of 700 acres in south India, which is under development.