The Hindu Business Line : Bhagyangar India plans Rs 325-cr capex

Bhagyanagar India Ltd, formerly Bhagyanagar Metals Ltd, has firmed up a capital expenditure of Rs 325 crore for real estate projects it has embarked upon during the year.

To part fund some of the projects in Andhra Pradesh, the company is set to offer a Foreign Currency Convertible Bond issue of $15 million (about Rs 70 crore) and is planning a preferential offer to strategic partners.

The Managing Director of Bhagyangar India, Mr Narender Surana, said the company plans to take to real estate development in a big way and would make use of the land bank it has created over the years. These projects include an IT park and an integrated technology township in Hyderabad and a housing project of the Andhra Pradesh Housing Board in Vizag.

Mr Surana told Business Line, "the company changed the name to Bhagyanagar India as it was felt that Bhayanagar Metals Ltd was not representing the diversified activities the company is currently engaged into. We continue to work on the metal industry and component manufacture, but the thrust would be on real estate projects."

As a part of this initiative, Bhagyangar has already roped in a strategic partner, Guocoland, (a listed company and a leading property developer in Singapore, along with Gayathri projects, for the development of a property near Hyderabad.

Mr Satpal Khattar, a Singapore-based investor, had picked up 10 per cent stake in the company.

Giving details of the fund raising plan, Mr Surana said that of the Rs 325 crore, the company plans to raise $15 million from the FCCB issue by the month end, pump in Rs 120 crore through internal accruals, and the rest would be raised through debt.

As a part of its diversified activities, the company is in the process of establishing a 5-MW wind energy project in Karnataka and is in talks with Suzlon for plant and machinery.

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