Mumbai: Pune-based Kumar Builders plans to raise Rs 450 crore through an initial public offering. It has filed its draft red herring prospectus with SEBI.

With over three decades in real estate development, the company has developed 11 million sq ft. Over 5.5 million sq ft has also been developed by its group companies. Currently, it has about eight lakh sq ft under development, with a land bank of 1,600 acres spread across Mumbai, Pune, Bangalore, Nagpur and Hyderabad of which 1,360 acres is fully paid up.

The company is developing a special economic zone in Hinjewadi through its subsidiary and an IT/ITES, also an SEZ, close to Rajiv Gandhi IT Park there. Two townships of 100 acres each are in the process of being launched in Kharade and Hinjewadi.

About Rs 200 crore of the money raised would go to servicing debt and the balance to development work, said Mr Lalitkumar Jain, Chairman, Kumar Builders. The company has a total debt of Rs 460 crore. For the year-ended March 2009, the company’s consolidated income and net profit were Rs 239.12 crore and Rs 34.85 crore, and for the previous fiscal Rs 324 crore and Rs 68 crore.

Source: The Hindu Business Line

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