DB Realty likely to raise Rs 2000cr via IPO

DB Realty may soon join the list of real estate developers taking the initial public offering, or IPO, route to raise funds. It plans to raise Rs 2,000 crore from a public issue soon. CNBC-TV18's Anumeet Kaur Bisen reports.  

The real estate sector is on a fund raising spree. After Godrej Properties, Lodha Developers and Oberoi Constructions, CNBC-TV18 learns, that another mumbai based developer DB Realty too is set to make its debut on Dalal Street. The company wants to raise around Rs 2,000 crores by diluting about 20% stake. 

The company wants to use this money to fund its projects. Sources say the company has executed 18 million sq ft of realty projects so far. It is developing 25 million sq feet more that includes seven residential and commercial projects. It has target of developing an additional 74 million sq ft over the next five years.

Private equity funds like IL&FS , Trinity Capital and Lehman Brothers had earlier picked up almost 18% stake in db realty.  Sources indicate, that the company could be valued as high as two billion dollars.