BPTP PLANS RS 1,500 CR IPO IN EARLY 2010-11

Real estate developer BPTP today said it plans to rise around Rs 1,500 cr through an initial public offer (IPO) by early 2010-11

"We have applied to the Securities and Exchange Board of India (Sebi) for approval. We hope to launch our IPO of Rs 1,500 cr early next fiscal," BPTP Managing Director Kabul Chawla said.

The company, which has a net worth of Rs 1,600 cr, is hoping to clock a top line of Rs 1,000 cr and profit after tax of Rs 200 cr in 2010-11.

The company plans to pre-pay its Rs 325 cr debt from the issue proceeds, while Rs 500 cr has been earmarked for government use (conversion of land), he said.

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

JP Morgan and SSKI is the book running lead managers (BRLMs) to the issue. The company, which is primarily into mid-housing development, also has four special economic zone (SEZ) projects but, is currently going slow on them.

"Given 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, forresidential purposes. We might exercise this option if the market conditions so demand," he said. On its focus on the national capital region (NCR) market Chawla said: "There is tremendous potential here and we intend to continue focusing 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 cr, so far.

Courtesy:- BS dt:- 11-Mar-2010

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