The Hindu Business Line : Brigade targets Rs 450 cr through IPO

Mumbai, Oct 3 Bangalore-based real estate company Brigade Enterprises Ltd plans to raise about Rs 450 crore in the capital market to fund expansion. The initial public offering is slated for end October or early November.

The company, involved in developing residential, commercial and hospitality properties, intends to invest about Rs 1,265 crore for acquisition of land, construction and development in relation to ongoing projects, and forthcoming projects such as malls and the hospitality projects in association with the Sheraton Group. It proposes to acquire 41.85 acres in Bangalore and Kottayam (Kerala), for which it has to pay Rs 47.96 crore.

The company is in the initial stages of construction and development of an office complex and the multilevel car park in Bangalore totalling 1.93 million sq ft of saleable area. It is developing a mall situated at Brigade Gateway of about 1.08 million sq ft of saleable area.

The projects’ land is registered in the name of the company.

The company is in the initial stage of constructing 0.52 million sq ft of saleable area for the Sheraton Hotel, Bangalore.

As of September, Brigade’s land reserves are 395.05 acres for which it has made advance payment of Rs 477.65 crore and is further required to pay Rs 227.96 crore. The reserves are in and around Bangalore, Mysore, Hyderabad, Chennai, Kottayam, Mangalore, and Chickmagalur.

Brigade Enterprises’ consolidated total income was Rs 417 crore for fiscal 2007, Rs 203.23 crore for 2006, and Rs 160.50 crore for 2005, with profit after tax at Rs 71.5 crore for fiscal 2007, Rs 42.30 crore for 2006, and Rs 19.87 crore for 2005.

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