The list of domestic realty majors going public is increasing by the day. The latest to join the bandwagon is Delhi-based developer Ambience Projects and Infrastructure, which is planning to launch its initial public offering (IPO) in 2008 at an approximate valuation of Rs 1,500-2,000 crore. The company is also planning to disinvest 5-10 per cent of its stake to an international fund investor, talks for which are underway.
The funds – both from the IPO and the stake sale – are expected to be put into existing as well as future projects. Known for Ambi mall, the 1-km-long shopping center that it opened on NH 8 in Gurgaon, the Ambience Group was incorporated in 1986 and is engaged in the development of shopping malls, office space, hospitality and entertainment zones.
Raj Singh Gehlot, chairman and managing director, Ambience, said: “Selling some stake to an international investor is in the pipeline. As far as going public goes, we are planning to come out with our IPO next year, the valuation of which would be done as we progress. However, the approximate valuation is Rs 1,500-2,000 crore. We intend to use the funds received and garnered in our existing and future projects. Also on the cards is acquisition of projects at strategic locations in various cities across Indian and abroad.”
Since the past two decades, Ambience has developed more than 250 large, medium and small-sized residential and commercial complexes at various locations in south Delhi and Gurgaon covering a total area of about 8 million sq ft. Another 2.5 million sq ft is due for completion in 2008.
The group’s revenue has grown from Rs 75 crore in 2003 to Rs 475 crore in 2007, and profitability from Rs 3.7 crore in 2003 to Rs 44 crore in 2007.
Some of the most notable projects of Ambience include Ambience Island, a premium residential township in Gurgaon, Ambi Mall in the same area, residential townships in Panipat and Noida, Ambi Mall at Vasant Kunj in south Delhi. The company has also recently acquired 45 acres of land in an auction by the Vishakhapatnam Urban Development Authority. It also has a tie-up with Hotel Leela Kempinski for the operation and management of a five star hotel and serviced apartments at Ambience Island, Gurgaon.