HCC Considering Lavasa Project IPO

Hindustan Construction Company (HCC) is planning to raise about Rs 1,500 crore through an initial public offering (IPO) for the Lavasa project near Pune. It is free India’s first and largest hill city being developed by Lavasa Corporation an HCC Group Company.

The company is planning an IPO to fund the cost of the project and will be entering the primary market by October 2010.

The size of the offering is said to be about 10 % of the valuation of the project which currently stands at Rs 10,000 crore and is expected to go up to Rs 15,000 crore.

The hill city is a joint development project by HCC, Avantha Group and Venkateshwara Hatcheries, with 65%, 15 % and 12.5 % stake respectively. On the other hand the project has received an investment of Rs 450 crore from Axis Bank, Allahbad Bank and Bank of India for a stake of 2.5%, 1.5% and 0.5 %, respectively.