Lavasa Corporation, which is building an ambitious five-town Lavasa project in Pune district, on Tuesday filed the draft red herring prospectus with the Securities and Exchange Board of India to raise Rs 2,000 crore through its initial public offering.
With around 10 per cent equity dilution the company will be valued at Rs 20,000 crore at the time of listing. The issue is expected to hit the market in November and will help the company reduce debt.
“The issue will help reduce the debt that currently stands at Rs 1,700 crore along with land expansion and project development,” said a source close to the development.
ICICI Securities, Kotak Mahindra Capital, Morgan Stanley India and Axis Bank are the book running lead manager to the issue.
The company plans to complete the first town in Lavasa in 2011 and the second by 2013-14.