India: Realty firm Lavasa fails to follow on IPO plans, lets approval lapse a second time

Photo: Mint

Lavasa Corp. Ltd, the real estate arm of engineering company Hindustan Construction Co. Ltd (HCC), has let its initial public offering (IPO) approval lapse for a second time. On 10 November last year, the markets regulator approved Lavasa’s application to raise capital via a primary issue The company was looking to raise Rs.750 crore to expand its real estate business.

Lavasa’s management had earlier said it would likely launch the IPO during the September quarter this fiscal year.

Axis Capital Ltd, Kotak Mahindra Capital Co Ltd and ICICI Securities Ltd were the bankers for the issuance.

An HCC spokesperson declined to comment.

This is the second time that Lavasa has failed to follow through on plans to go public. In 2010, Lavasa planned to raise Rs.2,000 crore by selling 10% of the promoter stake, but the plans were abandoned due to market weakness. This time, too, weakness in the sentiment towards the real estate sector hit the company’s plans.

“The company never went on a stand-alone road show. They were pitching (the IPO) together with HCC’s QIP (qualified institutional placement) earlier this year but nothing more happened,” said one of the bankers involved in the process, on condition of anonymity.

In April this year, HCC raised Rs.400 crore through a QIP. The company launched the issuance at a 10% discount to its last traded price for Rs.30.98 per share. HCC was the first infrastructure QIP to hit the stock market in 2015.

According to a second banker familiar with the development, the firm may refile IPO papers early next year even as it looks at other fund-raising options.

“The company is now contemplating either raising private equity funds or refiling (for an IPO),” said the second banker, who also requested anonymity.

According to data from Prime Database, so far this year, 18 firms have raised almost Rs.11,000 crore through IPOs and more than 30 have filed draft IPO papers with the Securities and Exchange Board of India.

This article was first published on Livemint.com

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.