Nandi Expressway IPO : Plans to raise Rs 2,000 crore

by khalid on 02/01/2011 · 0 comments

Nandi Expressway Limited is planning to come up with an Initial Public Offer (IPO) in near future. The company plans to raise Rs 2,000 crore for its controversy-ridden expressway project executione connecting Bangaluru and Mysore and filed a DRHP with market regulator SEBI for the same. Currently, promoter and promoter group hold the entire 100% stake in the company. After the proposed IPO of 39 lakh equity shares of Rs 10 each, the promoters holding will be reduced by 27.24%.

Promoter group includes BN Kalyani, chairman of Kalyani Group and Ashok Kheny hold a 77% stake in the company founded mainly by BF Utilities . Anil Ambani has a 15% stake, Indus Fund and New India Insurance 6% and 2%, respectively. The IPO proceeds will part-finance the construction of a 99-km expressway between Bangalore and Mysore , three township projects and a 400-mw power project. Nandi Economic Corridor Enterprises intends to sell land in plots instead of developing the whole parcel of land and in lieu of this, it expects to generate significant profits from the same in the near future.

“The viability of the project depends on the development of real estate to a great extent,” according to a report from rating agency CARE. The Bangalore-Mysore corridor involves construction of 7,000 acres in the first phase alone. The project consists of four components — a 9.1-km stretch connecting Bangalore to the peripheral road, a 41-km peripheral road connecting Bangalore to Hosur, Tumkur road, a 111-km expressway between Bangaluru and Mysore and a 3-km elevated road near Bangaluru.

Stay tuned to BelltheBull Blog for more news on Nandi Expressway IPO !

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