To raise money by IVRCL Prime IPO: IVRCL

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To raise money by IVRCL Prime IPO: IVRCL

VC & MD at IVRCL Infrastructure and Pojects, Sudhir Reddy says, they are looking at raising money via IVRCL Prime IPO and expect to have a topline of Rs 160-170 crore, and bottomline of Rs 40 crore.

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Q: Has there been any decision on how much you would be offering when IVR Prime decides to raise money?

A: If it is an IPO then whatever is the basic minimum directed by SEBI or the stock exchange we would be sticking to that in the first round.

Q: Could you give us a ballpark range of what the requirement is in terms of finances at IVR Prime?

A: Requirements are towards bringing in more land and things like that so in the short-term it will be about Rs 150-250 crore but in the mid-term it will be Rs 250-500 crore.

Q: Give us an idea on the 43 acres of the land that you have acquired in Noida for the group housing activity? You are planning to construct about 2.8 million sq ft of housing. How soon does this get underway and when does it start contributing to the financials of IVRCL?

A: Noida was out of a tender, which IVRCL bided and got. It's in a very advanced stage now. We are hoping to start the construction in December and probably start sales from January or February but some turnovers, some sales will happen definitely by this fiscal year.

Q: In terms of financial performance for IVR Prime what is the expectation, projections that you are making at this point?

A: This point without taking Noida in picture we are looking at almost about Rs 40 crore of bottomline with about Rs 160-170 crore of topline excluding Noida. Whatever gets added up it will get added from Noida.      

Q: IVRCL Water Infrastructures Ltd work has been the prime focus for IVRCL with this real estate thrust. What would be the contribution or the breakup in revenues going forward over next couple of years? Is it going to tilt in favour of construction?

A: Yes, definitely. But I do not see IVR Prime coming anywhere near the construction figure even by FY08. We are seeing about 40% of our topline probably would be IVR Prime but IVR will have better EBITDA. In terms of number of works excluded or the complexities of the projects water is any day our cup of tea.