Parsvnath Developers plans Rs 70cr project in Hyd

New Delhi-based real estate player, Parsvnath Developers Limited, is on the course to set up a commercial project in Hyderabad, involving an investment of Rs 60-70 crore.

The proposed project will comprise a shopping mall, five-star hotel and multiplex with a total built-up area of four lakh square feet.

Addressing mediapersons in connection with the company's forthcoming initial public offering here on Tuesday, Parsvnath Developers' managing director Sanjeev Jain said, "We have purchased 2.5 acres of land at Kukatpally at a government auction at Rs 18 crore per acre for the proposed project. We are currently in the process of preparing a project report and will soon submit the same to the Hyderabad Urban Development Authority (Huda). It will take another two-three months for receiving final approval from the authority."

The project will entail an investment between Rs 60 crore and Rs 70 crore, excluding the land cost, according to Jain.

The company has received in-principle approvals for nine SEZs from the Centre, covering 14.8 million square metres in 10 states, while applications for six more SEZs are pending with the ministry of commerce and industry.

The nine projects included a biotechnology SEZ in Hyderabad in an extent of 25 acres, and an information technology SEZ at Gurgaon, Jain said, adding that the company was at present in the process of acquiring land from private owners in the city.

He said that the company was entering the capital market with a public issue of 33,238,000 equity shares of Rs 10 each for cash through a 100 percent book-building process.

The IPO comprises a net issue to the public of up to 33,038,000 equity shares and a reservation of up to two lakh equity shares for subscription by employees.

There will also be a green shoe option of up to 30,87,800 equity shares. The price band for the issue has been fixed between Rs 250 and Rs 300. The issue opens on November 6 and closes on November 10, 2006.

The company has appointed Enam Financial Consultants Private Limited, JM Morgan Stanley Private Limited and DSP Merill Lynch Limited as the book-running lead managers to the issue.

"The funds raised from the equity issue will be deployed in various ongoing projects across the country," Jain said.

The company currently has 79 ongoing projects across 41 cities in 14 states, and this does not include SEZ projects, he disclosed.