Financial Daily from THE HINDU group of publications
Thursday, Jun 08, 2006
Financial Daily from THE HINDU group of publications Thursday, Jun 08, 2006 |
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Corporate
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Outlook Industry & Economy - Real Estate & Construction Janapriya weighing fund-raising options C.R. Sukumar
Future projects Plans information technology Special Economic Zone (SEZ) in Hyderabad comprising over 10-million-sq-ft built-up area on a 40-acre land. A similar IT SEZ project and a major shopping-cum-office complex in Bangalore planned. Looking to meet housing needs of IT, BPO employees.
Hyderabad , June 7 With a land bank of over 150 acres in two major cities worth more than Rs 250 crore, Janapriya Engineers Syndicate Ltd (JESL), the Hyderabad-based construction major, is weighing a wide range of options to raise funds for completing the ambitious projects being contemplated over the land bank. The fund raising options include roping in strategic or financial investors, privately placing debt and equity instruments with foreign institutional investors and raising funds through an initial public offering (IPO), the JESL Chairman and Managing Director, Mr K. Ravinder Reddy, said.
Impending projects
The projects include a major information technology Special Economic Zone (SEZ) in Hyderabad comprising over 10-million-sq-ft built-up area on a 40-acre land, and a similar IT SEZ project and a major shopping-cum-office complex in Bangalore. Janapriya is currently contemplating projects worth around Rs 2,500 crore on the 150 acres of land bank it has in Hyderabad and Bangalore. It proposes to complete at least one-fourth of these projects in 12-18 months' time. "As of now we are comfortable with internal accruals and institutional debt to initiate the projects. However, going forward, we may require sizeable funds to complete the projects on time. Keeping this in view, we are evaluating various options of raising funds. We may first consider private placement of equity with institutional investors and then go public at a later stage to provide them an exit route or go public directly," Mr Reddy said.
Future plans
Further, the company is also considering constructing major shopping malls and multiplexes in Hyderabad and Bangalore. "We are currently negotiating with a couple of the leading mall architects and multiplex consultants for these projects," Mr Reddy told Business Line. Janapriya is now at thefinal stage of preparing blueprints for the IT SEZs in Hyderabad and Bangalore. It claims to have enough land in the heart of these cities for the purpose. "We plan to come out with plug-and-play office facilities for the multinational IT and BPO companies. Though we propose to sell some portion of the office space, we prefer to retain ownership over major part of the facilities," Mr Reddy said. Having catered to the needs of low and middle-income employees since its inception, JESL is now looking at meeting the residential needs and expectations of new-generation employees of the IT, ITeS and BPO sectors with high pay packets. Accordingly, the company is coming out with high-end residential complexes with all possible amenities at affordable monthly maintenance expenses, Mr Reddy said.
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