Set to celebrate its silver jubilee, property developer Lancor Holdings Ltd. is in the process of raising growth capital to beef up its land bank.
The company is looking at raising equity funds to the tune of Rs. 60-70 crore. Lancor will use the QIB (qualified institutional bidder) route to raise growth capital.
The paid-up capital of Lancor currently stands at Rs. 4.05 crore. Twenty-five summers ago, it began with a paid-up capital of Rs. 20 lakhs. This has grown to the current size through issue of bonus shares.
Addressing a press conference here on Tuesday, R.V. Shekar, Managing Director, said Lancor had in all completed around 50 projects. Another 15 projects worth a total of three million square feet were either running or in the pipeline, he added.
Funds for projects worth around 2.3 million square feet had already been tied up. The reminder would require finance to the tune of Rs. 120 core to Rs.150 crore, he said. Lancor would look for QIBs to raise Rs. 60crore to Rs. 70 crore. Internal accruals would take care of the remaining fund needs, he pointed out. Though Lancor had a debt-equity of 1:1.5 at the moment, Mr. Shekar said this would improve drastically in a few months.
The Managing Director said Lancor was currently focussing on a couple of projects — a 172-apartment project in Sholinganallur on OMR (Old Mahabalipuram Road) and an apartment construction project (680 flats) behind SRM Engineering College on the GST (Grand Southern Trunk) Road. The first phase of the GST Road project, he said, would go on stream in June 2010.
By 2012, the full project would be in place, he added. He said Lancor was keen to develop green projects. In this context, he pointed to 2,35,000-square feet project in the city. Even the occupants of the building in this project were following the green building norms, he said. Lancor was in the process of obtaining carbon credit for this building, he added.
