Real estate firm BPTP Ltd has received approval from the markets regulator for an initial public offering to raise about Rs 1,500 crore (USD 325 million), two sources with direct knowledge said on Thursday. The New Delhi-based builder joins a long list of private as well as state-run firms jostling to tap the market as Indian companies raise funds to repay debt and fund expansions. Since mid-2009, about 15 developers have lined up plans for initial public offers to raise about USD 6 billion on the back of reviving property demand. These include a USD 650 million issue by Lodha Developers, a USD 770 million offering by Emaar MGF, an Indian joint venture of Dubai’s Emaar Properties, and a USD 650 million IPO by Sahara Prime City. However, the Mumbai stock index has dropped 2.7% this year after an 81% jump in 2009 and a crowded calendar of public offers are threatening to derail fundraising plans by the property firms. Godrej Properties, DB Realty and Nitesh Estates, the three developers that launched IPOs this year, saw poor retail support although the issues were oversubscribed on demand from institutions. BPTP will take a decision on the timing of the issue after reviewing market conditions, said one of the sources. BPTP focuses on residential projects in Gurgaon, Faridabad and Noida, all in the vicinity of New Delhi. The company had 17 ongoing projects with total built up area of 39 million sq ft, as at December 2009, according to its draft prospectus. The company plans to use the proceeds from the issue to fund construction on existing and future projects and to repay debt. JPMorgan India and IDFC Capital are the book running lead managers to the BPTP issue. Source: www.indianrealtynews.com
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