Triveni Infra plans maiden float in Q2

NEW DELHI: Delhi-based real estate company Triveni Infrastructure Development Co Ltd plans to raise nearly Rs 400 crore through an initial public offer (IPO).

Madhur Mittal, managing director of the company, said it plans to hit the market in the second quarter this fiscal and will file the draft red herring prospectus with the Securities and Exchange Board of India soon.

The promoters plan to dilute 15-20% stake through the IPO, of which some 5% would be placed with private equity investors, said Mittal.

The company plans to invest Rs 1,000 crore in and around the National Capital Region to expand  its business. The investment,  which will be “residential heavy,” will include mid-entry flats with a price range of Rs 25-40 lakh aimed at the middle and upper-middle classes.

The privately-held company, with a land bank of 500 acres at present, will acquire an additional 200 acres this calendar. In the next five years, it aims to have a total land bank of 2,000 acres.

“We are targeting the middle and upper middle class segment in North India. The impact of slowdown in the property market has been minimal in this segment. And that is our strategy,” said Mittal.

The funding for the investment would come from a mix of internal accruals and debt.
Triveni’s current commercial portfolio is just 10% of the total, which Mittal believes will go up to 20-25% in the next two years.

vivek_s@dnaindia.net