Bangalore based real estate developer, Vaswani Group is planning to raise around Rs 200 crore-Rs 280 crore through private equity (PE) route in the current financial year in its bid to fund its future growth. The present fund raising is part of company’s overall plan to raise around Rs 500-700 crore to support its expansion plan.
“We plan to raise aro-und Rs 500- Rs 700 crore to fund our future growth plans in the next two-three years. Out of this, around 40 per cent will be raised through private equity route,” Neville M Vaswani, managing direc-tor of Vaswani Estates Dev-elopers said.
He, however, declined to give any time frame for this proposed fund raising by the company.
As per industry sources, the company has mandated a Mumbai based investment banker to conduct the due diligence for the company.
Vaswani Group, which has interests in residential, commercial, retail and hospitality sector, will utilize these proceeds for its upcoming projects in Bangalore and Goa. “The present fund raising will be utilised in our upcoming projects in Sarjapur, outer ring road in Bangalore along with projects in Goa and Mumbai,” Vaswani said.
Barring around Rs 280 crore of equity infusion , rest will be funded through a mix of debt funds, internal accruals and proceeds from clients.
Vaswani Group has developed around nine to 10 million sq ft of real estate space acr-oss verticals in the last two decades.
“We have develo-ped around 1.5 million sq ft in the last financial year and are planning to launch 1.5-2 million sq ft in the current financial year,” Vaswani said. The company aims to sell around 50 per cent of the new project in the current financial year, he added.
Referring to debt raising part, Vaswani said that despite policy rate hike, the company would be in a comfortable condition to raise money from financial institutions.
He, however, said that it has no plans to go public in the near future and would continue to increase its scale of operation before hitting the market.
“We want to expand our operation in the existing cit-ies and have no plans to go public in the near future,” he added.
