Thursday, July 13, 2006
Construction major looks at floating IPO by year-end
THE SOUTH-BASED construction major, Sobha Group will go in for an initial public offer (IPO) through a 100 per cent book-building route to fund its expansion plans.
With a turnover of over Rs.800 crores, the group, with a backward integration model, has 29 ongoing projects and last year completed eight million sq.ft. of residential and corporate space.
With nearly 30 per cent of its revenue coming through the corporate route, the company is all set to expand to other cities, Jackbastian K. Nazareth, group director for marketing, sales and company Affairs, told a visiting UNI correspondent at Vadakkenchery near Palakkad in Kerala.
Preparation
Mr. Nazareth said the process of preparing the draft prospectus for the IPO was in final stages and would be submitted to Stock and Exchange Board of India soon. He said the size of the IPO was yet to be finalised.
He said only a few real estate houses had successfully tapped the capital market.
He said the real estate boom in the country would witness a new growth trajectory with the FDI being allowed in real estate by the Government and also opening up of mutual funds to look at real estate properties.
Property
Mr. Nazareth said the group, which had been building flats predominantly in Bangalore, would soon spread to Kerala where it had identified property in Kochi and Thrissur for a major housing project. Similarly it would also start construction in Mysore in Karnataka besides other cities such as Delhi, Pune, Hyderabad and Chennai. ``We will be present in 13 cities shortly'' he added.
Backward integration
Perhaps one of the few builders to have backward integration, Sobha Group had factories for woodwork, glazed tiles and hollow blocks. Mr. Nazareth said that over a period of time, these units would become income generating ones on their own selling surplus materials. It had recently installed a German machine in its unit in Bangalore where 20,000 hollow blocks could be produced in a day.
Sri Kurtumba Trust, a charitable trust founded by Sobha Group Chairman P.N.C Menon, has come up with a charitable home for aged at Vadakkencherry to help aged couples, who have no known source of income, live a decent life.
Called the `Sobha Hermitage,' the old-age home has 55 rooms of which 50 would be provided to the deserving couple. Nearly 60 per cent of it would be provided free trust chairman V.K. Balan told newsmen.
The project on completion would cost Rs 13 crores, he added. The monthly recurring expenditure would be around Rs 1.3 crore. Besides the old age home, a polyclinic and a school was also being built in a 25 acre, area he added. - UNI
With a turnover of over Rs.800 crores, the group, with a backward integration model, has 29 ongoing projects and last year completed eight million sq.ft. of residential and corporate space.
With nearly 30 per cent of its revenue coming through the corporate route, the company is all set to expand to other cities, Jackbastian K. Nazareth, group director for marketing, sales and company Affairs, told a visiting UNI correspondent at Vadakkenchery near Palakkad in Kerala.
Preparation
Mr. Nazareth said the process of preparing the draft prospectus for the IPO was in final stages and would be submitted to Stock and Exchange Board of India soon. He said the size of the IPO was yet to be finalised.
He said only a few real estate houses had successfully tapped the capital market.
He said the real estate boom in the country would witness a new growth trajectory with the FDI being allowed in real estate by the Government and also opening up of mutual funds to look at real estate properties.
Property
Mr. Nazareth said the group, which had been building flats predominantly in Bangalore, would soon spread to Kerala where it had identified property in Kochi and Thrissur for a major housing project. Similarly it would also start construction in Mysore in Karnataka besides other cities such as Delhi, Pune, Hyderabad and Chennai. ``We will be present in 13 cities shortly'' he added.
Backward integration
Perhaps one of the few builders to have backward integration, Sobha Group had factories for woodwork, glazed tiles and hollow blocks. Mr. Nazareth said that over a period of time, these units would become income generating ones on their own selling surplus materials. It had recently installed a German machine in its unit in Bangalore where 20,000 hollow blocks could be produced in a day.
Sri Kurtumba Trust, a charitable trust founded by Sobha Group Chairman P.N.C Menon, has come up with a charitable home for aged at Vadakkencherry to help aged couples, who have no known source of income, live a decent life.
Called the `Sobha Hermitage,' the old-age home has 55 rooms of which 50 would be provided to the deserving couple. Nearly 60 per cent of it would be provided free trust chairman V.K. Balan told newsmen.
The project on completion would cost Rs 13 crores, he added. The monthly recurring expenditure would be around Rs 1.3 crore. Besides the old age home, a polyclinic and a school was also being built in a 25 acre, area he added. - UNI
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