HCC board approves Rs 2000cr Lavasa Corp IPO

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Lavasa Corporation, a subsidiary of Hindustan Construction Company (HCC) has received board approval for an initial public offer (IPO) of upto Rs 2,000 crore of fresh equity shares. HCC holds 65% stake in Lavasa.

Lavasa has already started operations in its first town Dasve, which is expected to be substantially functional by December 2011. Work has also commenced on the second town and the company has advanced its plans for the next phase.

Ajit Gulabchand, CMD, HCC said, "Lavasa's IPO will unlock its true value, thereby enabling HCC to be one step closer in realising its vision of creating a hill city development in India which offers infrastructure better than that available in an average Indian city."

Lavasa has reported revenues at Rs 181 crore for the quarter ended June 2010 and net profit at Rs 49 crore.

HCC's board members approved bonus issue of one equity share for every one share held. It has reported standalone net profit at Rs 28.3 crore as against Rs 18.2 crore, a growth of 55.5% on year-on-year basis (YoY). Its standalone net sales rose 15.55% to Rs 1,008.2 crore from Rs 872.5 crore (YoY). The order book of HCC is currently at Rs 19,346 crore.