Construction major HCC’s group company Lavasa Corporation, which is developing an ambitious Rs 30,000-crore hill city project, has deferred its plan to launch an initial public offer due to the global economic slowdown.
“The IPO would be launched when the market will be alright and the global economy starts looking up,” Lavasa Corporation Chairman Ajit Gulabchand, who is also the chairman-cum-managing director of HCC, said.
The company had plans to come up with a public offer by October 2010. The size of the public offer was slated to be at 10 per cent of the project valuation at the time of IPO.
The valuation of the project could go up to Rs 40,000 crore by 2020, Gulabchand said.
The project completion has been advanced to 2015 from earlier plan of 2020, Gulabchand said on the sidelines of the launch of Fortune Select Dasve at Lavasa.
Real estate in Lavasa would alone generate revenue to the tune of Rs 1,47,000 crore by 2020 in addition to other revenues, he said. “The debt-equity ratio is 2:1. We have already invested Rs 1,500 crore in the project,” he said.