Rajesh Patil, CMD of Kolte-Patil Developers has informed that his company has 28 ongoing projects in Pune and Bangalore; 23 are residential and 5 are commercial, IT Parks. They plan to raise Rs 275 crore from the IPO, he added.
Excerpts from CNBC-TV18’s exclusive interview with Rajesh Patil:
Q: What is the total amount of money that you require currently?
A: The amount we will be raising from IPO is Rs 275 crore.
Q: Are you doing any kind of pre-IPO placement before the IPO opens or are you also looking at raising debt for your expansion?
A: Definitely, we will be raising debts. Currently the company has debts of Rs 70 crore and future debt requirements will be project specific.
Q: Give us an idea of the joint venture that you have with ICICI Venture Fund Management. It’s concentrated in Pune, one IT Park, and two townships. When do these three projects kick in and when do they start contributing to you financially?
A: We have three big projects in Pune with ICICI; one of them is an IT Park in Kharadi, which is 1 million sq. ft. We will be launching that project by November end. Another one is 1.2 million sq. ft. of residential project on Nagar Road, which will be launched in the month of December and third is a biggest township of 400 acre, integrated township in Hinjewadi which will be started somewhere in the month of February-March 2008.
Q: Apart from the ICICI Venture Projects, what are the total projects you are sitting on right now and if you could demark it - how many are residential and how many commercial?
A: We have 28 ongoing projects in Pune and Bangalore. Out of the 28, 23 are residential and 5 are commercial-IT Parks.
Q: Talk about your margins because on YoY basis there is been a significant jump in FY07. Did you book higher revenues in this financial year because margins came up from about 7.8% to 39% and what’s the kind of sense that you are getting right now in terms of how much expansion in margins you can see when you book more revenues from the ongoing projects?
A: In FY07, we completed one of our biggest IT Park, Gigaspace in Pune, which has fetched us higher revenues - that has been the biggest jump in the total revenue. As our average land price is Rs 149; we see a big jump in our profit margins.
Q: You said 1,250 acres. What is the saleable area and what is the reserve that you have?
A: Out of 1,250 acres total saleable area available will be 33 million sq. ft. and out of 33 million sq. ft., 80 million is ongoing and current projects, which will be completed in a span of three-four years and 21 million sq. ft. is our land reserve.
Q: One word on the joint venture that you have with Yatra Capital, which is a Jersey-based real estate fund, the property that you are developing under that?
A: We have three residential projects with Yatra Capital in Pune; one of them is in Kharadi that is 7-lakh sq. ft., another is in Mohammed Wadi and all three are mid-market segment with Yatra Capital. Total area available will be 33 lakh sq. ft.
Sunday, November 11, 2007
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