Land developer Lavasa Corporation, a unit of Hinudustan Construction Company, has filed the draft red herring prospectus for a Rs2,000 crore initial public offer.
"We will make a decision about the dates to launch IPO, once we receive SEBI approval," Ajit Gulabchand, chairman, Hindustan Construction Corporation (HCC), told reporters on the sidelines of World Economic Forum's (WEF's) India Economic Summit. Lavasa had earlier said it hoped to launch the IPO in December provided it got all clearances in time.
Lavasa is the country's largest hill city near Pune, covering 25,000 acres of land. The first phase of the project is nearing completion with its first town Dasve in advanced stage of development. The project has come under the scanner of the ministry of environment and forests. Environment minister Jairam Ramesh had said that he has received representations from people saying that the Lavasa project violated environmental norms.
The ministry had sent a letter to the Maharashtra state government in July asking details about environmental clearances the state had given to the project in 2002 and 2004.
On the lines of Lavasa, HCC is already planning another mega Water Front City at Dholera in 2011. The project will come up in the proposed special investment region (SIR) at Dholera with an overall investment of R40,000 crore in a phased manner.
HCC also said it was ready to pay back R550 crore, taken as debt in the form of Foreign Currency Convertible Bonds (FCCbs), if the bonds do not get converted into equity.
The FCCBs are slated to mature in April 2011 which were issued in 2005-06.