Today's Top Gainer
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Mr. Jitendra Virwani, Chairman, Embassy Property Development Company Ltd has over 23 years of experience in real estate and property development sector. He has been the Member of Young Presidents Organization since 1996.
Embassy Property Developments Limited commenced operations in 1993. The company has developed 24.54 million square feet of prime residential, office and retail space, finished with superior grade materials and elegant fixtures. The company is engaged in commercial, residential, retail and hospitality segments of the real estate industry. The commercial real estate business includes the development of business parks for the IT/ITeS sector, SEZs and corporate office space.
Yash Ved of IIFL provides the highlights of a media interaction where Jitendra Virwani says "We are planning to raise Rs 24 bn via IPO and will launch over the next 2 month."
Brief us about your IPO plans?
We are planning to raise Rs 24 bn IPO and will receive SEBI approval next week. The company is planning to launch IPO over the next 2 months. The IPO proceeds will be utilised to finance the construction and development of the company's (including its subsidiaries and associates) ongoing projects, repayment of loans and to meet general corporate purposes.
Out of Rs 2400 crore, Rs1500 crore will be going for construction and development, Rs 430 crore will be used for repayment of loan and remaining Rs 470 crore will used for general corporate purposes.
The joint global coordinators and book running lead managers to the issue are UBS Securities India Private Limited and Nomura Financial Advisory and Securities (India) Private Limited. The other book running lead managers are Citigroup Global Markets India Private Limited and Edelweiss Capital Limited
Tell us about your current and upcoming projects in commercial, residential, retail and Hospitality space?
The company has completed projects about 24.54 mn sqft of commercial, residential and retail space. The company is planning to develop about 89.9 mn sqft which consists of ongoing and proposed projects.
The company is planning to develop about 57.17mn sqft of commercial projects, 28.59mn sqft of residential projects, 2.49mn sqft of retail projects and 1.65mn sqft of hospitality projects.
The company's ongoing projects include:
Manyata Embassy (Bangalore) with an area of 9.4mn sqft, Pune Embassy TechZone with area of 6.5 mn sq ft, MKN Embassy Techzone(Malaysia) with an area of 3.2mn sq ft, and Embassy Techsquare(Bangalore) with an area of 1.6 mn sq ft.
The residential projects includes Embassy Pristine(Bangalore) with an area of 1.8 mn sqft , Embassy Grove(Bangalore) with an area of 0.5mn sqft, and Embassy Residency(Chennai) with an area of 2.7 mn sqft.
The retail projects include Embassy mall (Bangalore) and Embassy Galaxy (Bangalore)
The company has been at the forefront of delivering high quality IT/ITeS office spaces in India and Bangalore with average market share of 31.74% over last five years.
The company is planning to set up Embassy Knowledge Park located at an area of 22 mn sq ft.
The company is also expanding international market, with current project initiatives in Malaysia and Serbia.
All the projects will be completed by 2014.
How do you see the price scenario for Bangalore market in the coming months?
I expect 10-15% price rise in the Bangalore market for the coming months.
What is your land bank?
The company has a land bank of 1300 acres, out of which 850 acres will be developed in the near future.
What is the focus area going forward?
The company is expanding existing projects and develops additional integrated township developments. It will continue to focus on active asset management of commercial completed projects.
What is the revenue mix?
About 50% of the revenue comes from Commercial space and remaining 50% from the sale of land, leased properties, residential, and retail.
Brief us about your financials?
The company has posted results for the 11months ended FY10. The EBITDA margin stood at Rs 1922mn as compared to Rs 1648mn for the 11months ended FY09. The net loss stood at Rs 61mn for the 11months ended FY10.
Your current debt and debt equity ratio?
Our current debt is Rs15bn and debt equity ratio is 1:1.