Infrastructure major HCC's group company Lavasa Corporation today said that buoyed by good market conditions, it may launch its Rs 2,000 crore public issue by December.
Lavasa, the subsidiary of Hindustan Construction Company, is developing a Rs 30,000 crore hill city project near Pune in Maharashtra.
"If the good market condition continues to prevail, the company hopes to launch the initial public offering (IPO) by December. It plans to offer a 10 per cent stake to raise about Rs 2,000 crore," company's Executive Vice President (Business Development) Nathan Andrews told PTI.
"We have filed the Draft Red Herring Prospectus (DRHP) with (market regulator) Sebi some three weeks back. We will invest the proceeds in our Rs 30,000 crore Lavasa Hill City project," Andrews said.
The company has hired Morgan Stanley, Kotak Mahindra Capital, Axis Bank and ICICI Securities as its Book Running Lead Managers to manage the issue.
HCC holds 64.99 per cent stake in Lavasa Corporation, while other shareholders include Avantha Group, Venkateshwara Hatcheries and private investors.
The hill city, termed as country's largest such project, is being developed at Lavasa on 12,500 acres.
Andrews said the first phase of the project has been completed with an investment of Rs 2,000 crore, including Rs 1,000 crore on infrastructure development.
The first phase includes educational facilities on 100 acres, residential complexes and hospitals, he said, adding that of the 1,000 hotel rooms proposed there, 250 rooms have become operational.
"We have sold 1,700 homes so far and plan to build 75,000 homes in the hill city," Andrews said. The entire project is likely to be completed by 2020.
