The Hindu Business Line : Omaxe Construction to come out with IPO by year-end

REAL estate company Omaxe Construction Ltd on Wednesday said it plans to go for an initial public offering (IPO) by December 2006, putting 25 per cent stake on the block.

"Within one month, we will go for a private placement entailing 15 per cent stake, and thereafter we plan to go for an IPO by December 2006. The IPO, which would happen after Omaxe comes out with the results for the first two quarters of fiscal 2006-07, is expected to increase the visibility of the company," Mr Rohtas Goel, Chairman and Managing Director of Omaxe Construction Ltd, said.

Mr Goel said Omaxe's turnover is projected at Rs 750 crore for the year ending March 31, 2006, with profit likely at Rs 100 crore. For 2004-05, the turnover of the company stood at Rs 450 crore while the profit was close to Rs 22 crore.

He said the company would make a public offer for 25 per cent stake, but pointed out that the promoter's holding would not go below 65 per cent, post-IPO.

Omaxe, which was established in 1987, has undertaken projects in Delhi, Haryana, Uttar Pradesh, Rajasthan and Punjab, and has planned project locations in Madhya Pradesh and Chhattisgarh.

The company's ventures include developing township, building institutions complex, entertainment facilities, hospitals, shopping malls and residential towers.

Its residential projects include Mayfield Gardens, Olive Apartments and the Nile in Gurgaon; Royal Residency, The Forest and NRI City in Noida; Green Valley in Faridabad; and Omaxe City in Lucknow. On the commercial side, the company's projects are Omaxe Plaza and Wedding Mall in Gurgaon; Wedding Mall in Patiala; Omaxe Plaza in Ludhiana; and Omaxe Arcade and NRI City Centre in Greater Noida.

"Our future initiatives in other parts of the country will include Omaxe cities in Agra, Jaipur, Sonepat, Faridabad, Indore and Raipur amongst others," he added.