Tanuj

Bangalore-based real estate company Puravankara Projects (PPL) is in talks with major local and global hotel players to set up a chain of hotels in South India.

The company intends to set up either 5-star or business hotels in cities like Bangalore, Chennai, Kochi and Hyderabad where it has its operations at present. "We are in talks with all the major hotel operators to set up either a 5-star or a business hotels in some of the cities where we are operating currently. We would like to set up a chain of them but will also depend on the feasibility factors of such business in each of these cities. If the economies of scale do not permit, then we might set up only one or two," said Puravankara.

He further added that the company will be signing the deals in near future. The company is also in talks with major cement manufacturers in China, Ukraine and Pakistan to import cement. "The Centre has given its nod and with the scarcity in the Indian market, we are planning to import cement. We have also begun talks with players in China, Ukraine, Pakistan and some other countries," said Puravankara.

Lately, PDL has been experimenting with the latest technology for construction. The company recently imported the Miwan technology from Malaysia which involves using aluminium panels in construction and results in speedy work. PDL has used the technology for two of its residential projects in the south. The company also claims to be the only real estate company to be using end-to-end ERP system for its business.

Puravankara informed that the company has been acquiring land for its upcoming residential and commercial projects in Chennai. It has identified 43.56 million sq ft of land worth Rs 363 crore. To fund these acquisitions and to repay certain loans, PDL will be entering the capital market on July 31, with a public issue of 21,467,610 equity shares of Rs 5 each at a price band of Rs 500 per equity share to Rs 525 per equity share. The issue will be closing on August 3.

PDL has been into property development, real estate and construction sector since 1975 and has a land asset of approximately 95.60 million sq.ft. of saleable area. It earned a topline of Rs 417 crore and a bottomline of Rs 130 crore in FY 2006-07.

Source: moneycontrol.com
Date: 02/08/07

arun

Puravankara Projects Limited, a real estate development major India, entered the capital market on August 31with a public issue of 21,467,610 equity shares of Rs 5 each through 100 per cent book building process.

The price band has been fixed at Rs 5 to 525 per equity share of Rs 5 each. The issue which closes tomorrow would constitute 10.05 per cent of the fully diluted post-issue paid up capital of the company. DSP Merill Lynch Ltd, Citigroup Global Market India Pvt Ltd and Kotak Mahindra Capital CoLtd are the book running lead managers for the issue.

At a press meet, Ashish Puravankara, director, Puravankara Projects Limited, said, "the issue is being made through the 100 per cent book building process wherein at least 60 per cent of the issue will be allocated on a proportionate basis to Qualified Institutional Buyers (QIB) out of which 5 per cent shall be available for allocation on a proportionate basis to QIBs and mutual funds, subject to valid bids being received from them at of above the issue price".

Further upto 10 per cent of the issue will be available for allocation on a proportionate basis to retail individual bidders, subject to valid bids being received at or above the issue price. The company has completed 14 residential projects and one commercial project covering approximately 3.93 million sq ft of area for development and 3.77 million sq ft of saleable area.

While its revenue of Puravankara projects has increased by Rs 746.47 million from fiscal 2004 to 05 which represented an increase of 97.73 per cent by Rs 1293.94 million from fiscal 2005 to 06 which represented an increase of 85.68 per cent.

newstodaynet.com

John

Unstable markets have prompted Puravankara Projects, a Bangalore-based real estate company, to revise its initial public offer (IPO) price from Rs 500-525 per share to Rs 400-450 per share and extend the closing date by five days to August 8.

The company will now be raising Rs 850 crore at the lower end and Rs 956 crore at the higher end, against the original plan to raise Rs 1,073 crore and Rs 1,171 crore, respectively. "We are revising our issue price keeping in mind the volatility in global financial markets and also to respect investor sentiments," said Girish Puravankara, deputy managing director, Puravankara Projects. Puravankara aims to use the IPO proceeds to repay debt of Rs 419 crore and expend Rs 360 crore towards land acquisition.

The company is issuing 2.14 crore equity shares at a face value of Rs 5 each through the book building route.
DSP Merrill Lynch, Citigroup Global Markets and Kotak Mahindra Capital were lead managers. This is the second instance of an IPO being extended and repriced because of market volatility. Market volatility is also taking its toll on the issues that are to be listed next week. Real estate company Omaxe is due for listing in the middle of next week and bankers to the issue said that if the market doesn’t remain volatile, investors in the company will get decent returns.

business-standard.com