Kumar Urban Development to Raise Funds From PE Investors
Kumar Urban Development Ltd is planning to raise upto $800mn through private equity by diluting stakes in various SPVs.
The company is already is talks with an overseas PE investor to raise $100mn, which is likely to be signed in April.
The company is awaiting clearance from SEBI for an IPO where it wants to raise Rs 450 cr for land acquisitions, construction and to repay loans upto Rs200cr ( Company's debt stood at Rs 434cr as on 31 March, 09). The DRHP was filed in October 2009.
The SPVs were formed to execute residential and commercial projects across Mumbai, Pune and Bangalore. Kumar Urban has land banks in Hyderabad and Nagpur where it plans to develop residential projects.
The company's land reserves as of September 2009.
| City | Land Area | Developable Area | Developable Area2 | Saleable Area | Saleable Area2 |
| In acres | In million sq. ft. | % of aggregate area | In million sq.ft | % of aggregate area | |
| Pune | 1142.42 | 59.12 | 76.9 | 53.04 | 78.9 |
| Mumbai | 24.32 | 2.21 | 2.9 | 1.25 | 1.9 |
| Bangaluru | 222.46 | 6.83 | 8.9 | 5.05 | 7.5 |
| Hyderabad | 157.79 | 1.79 | 2.3 | 1.07 | 1.6 |
| Nagpur | 121.2 | 6.69 | 8.7 | 6.69 | 10 |
| Panchgani | 33.47 | 0.22 | 0.3 | 0.13 | 0.2 |
| Total | 1701.66 | 76.86 | 100 | 67.23 | 100 |
Kumar Urban Development is a pune based realty firm promoted by Lalit Kumar Jain and his family. Kumar Urban Development posted a net profit of Rs 34cr in FY09.
The authorized share capital of the company was Rs.0.5mn at the time of incorporation which was increased to Rs200mn in October 2006. As of now, the authorized share capital is Rs 1250mn out of which Rs 959mn is issued, subscribed and paid-up. 
Reliance Capital had invested Rs 100cr in the firm 3 years ago for 2.5% stake, valuing the company at Rs 4000cr then. According to LalitKumar, although reliance capital has a call option, it will stay invested in the company for another year and will not exit through the IPO.
Kishore Biyani is also on the board of directors of the group. According to a survey conducted by the Construction World publication in July 2009, the Company was amongst the top 10 builders in India.
Other realty companies looking for PE investment:
| Date | Company |
| Jan-10 | Sobha Developers |
| Jan-10 | Sunil Mantri Group |
| Jan-10 | Century Real Estate |
Source: ET
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 09/08/11 | Kumar Urban- Reliance PMS, Kotak Bank's NBFC | Private Equity | Kotak Mahindra Prime Limited | 11.07 |
| 31/12/09 | Kumar Urban- Reliance Capital | Private Equity | Reliance Capital Limited | 23.00 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 07/02/12 | Private Equity | SUN-Apollo India Real Estate Fund | Assotech Limited | 15.29 | Announced |
| 06/02/12 | Private Equity | Kotak Realty Funds Group | Orris Infrastructure Private Limited | 16.40 | Announced |
| 02/02/12 | Private Equity | Ascendas India Trust | Operational Buildings | 36.04 | Completed |
| 02/02/12 | Private Equity | Baring Private Equity Asia Limited | RMZ Corp Holdings Private Limited | - | Announced |
Company |
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| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Reliance Capital Limited | Anil Dhirubhai Ambani & Group (ADAG) | H' Block,1st Floor, Dhirubhai Ambani Knowledge City, Kopar Khairne, Navi Mumbai - 400 710 | Krishnadeep Marketing Services Private Limited | www.reliancecapital.co.in |
| Kumar Urban Development Limited | LalitKumar Jain & Family | Kumar Capital 2nd floor, 2413 East Street Camp. |
Lalith Gangadhar Constructions Private Limited Century Real Estate Holdings Private Limited StarLight Systems Private Limited Sobha Developers Limited Ansal Properties And Infrastructure Limited Tanglin Developments Limited |
www.kudl.in |
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