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Wednesday, March 10, 2010

Realty major BPTP plans Rs 1,500 cr IPO in early FY11

Real estate developer, BPTP, plans to raise around Rs 1,500 crore through an IPO early next-fiscal, a top company official said. "We have applied to Sebi for approval. We hope to launch our IPO of Rs 1,500 crore early next-fiscal," BPTP's Managing Director, Kabul Chawla, said here today.

The company, which presently has a networth of Rs 1,600 crore, is hoping to clock a topline of Rs 1,000 crore and PAT of Rs 200 crore in FY10.From the issue proceeds, the company plans to pre-pay Rs 325 crore of its debt while Rs 500 crore has been earmarked for government use, he said.

The realty major, presently, has a consolidated debt of Rs 900 crore.In 2011, Rs 150 crore will come up for repayment and in 2012, Rs 600 crore, Chawla said, adding that "though we are not stressed in terms of debt, we plan to pre-pay Rs 325 crore out of the issue proceeds."

JP Morgan and SSKI are the Book-Running Lead Managers (BRLMs) to the issue.The company which is primarily into mid-housing development also has four SEZ projects but is presently going slow on them.

"Given the prevailing market conditions, we have deferred activity on our SEZs so as not to over-leverage our balance-sheet," Chawla said.Going forward, BPTP might explore the option of converting these SEZs into residential use, Chawla said.

"We have the option of converting our four IT SEZs at Noida, Greater Noida, Gurgaon and Faridabad for residential purposes. We might exercise this option if the market conditions so demand," he said.On its focus on the NCR market he said, "There is a tremendous potential here, we intend to focus on this region."

Besides NCR, the company has one project in Hyderabad spread over 10 acres, which it plans to take up at an appropriate time. BPTP has a land bank of 1,860 acres. It has 37 million sq ft of ongoing projects and has sold 31 million sq ft worth Rs 5,500 crore so far. Its receivables stand at Rs 2,500 crore.

JP Morgan and Citi currently hold 12 per cent stake in the company while Merrill Lynch has 49 per cent stake in one of its Special Purpose Vehicle -- Vital.

At present, Citi Properties holds 50 per cent stake in its Faridabad SEZ SPV, 17 per cent in its Noida SEZ SPV and 43 per cent in its Greater Noida SEZ SPV.

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