Akruti eyes Rs 500cr mop up via IPO route

After a good run of recently-listed realty players in the capital market, Mumbai-based infrastructure developer Akruti Nirman, which is developing apartments for slum dwellers, is all set to raise about Rs 500 crore by going public.

The company plans to utilise the proceeds of the IPO for part-funding its expansion plans and would join the bandwagon of infrastructure developers like Parsvnath, Sobha Developers and Lanco, who have collectively raised over Rs 2,500 crore from the markets this year.

Akruti has filed the draft prospectus for its IPO with market regulator SEBI and expects to be open for subscription in January next year.

"Akruti is planning to dilute 10% stake through the IPO route and would raise around Rs 500 crore. The proceeds of the IPO would be utilised to fund the company's expansion plans," Hemant Shah, chairman of Akruti, said here.

The company is presently working on as many as seven commercial projects entailing an investment of about Rs 800 crore.

The company specialises in redeveloping slum land and building concrete houses for its habitants, while using excess land for other commercial projects like IT parks.

Akruti, which has constructed concrete accomodation for more than 10,000 slum dwellers so far, had begun with a project in Maharashtra. Recently, it forayed into commercial projects, including mall development.