OMAXE to launch three township projects by December

OMAXE to launch three township projects by December
Kolkata
DNA Business Standard The Hindu

Omaxe Ltd plans to launch three more hi-tech township projects by December this year, said Sunil Malhotra, vice-president finance. A major project among these is the launch of multiple phases of the company's Allahabad township, he said.

Omaxe is looking at equity infusion and joint ventures with landowners for these projects. Malhotra said the company plans to raise funds through a qualified institutional placement (QIP) in the next one or two quarters, but declined to confirm the amount to be raised.

Omaxe has a total debt of Rs 300 crore, but Malhotra said the company's debt liability for the current fiscal was manageable as it had rescheduled or restructured most of the amount.

The Delhi-based developer's subsidiary Garv Buildtech Private Ltd has also signed a memorandum of understanding with the Lucknow Development Authority to develop a hi-tech township. The company is investing Rs 2,300 crore on this project and expects to generate revenues of around Rs 2,800 crore.

The project will start generating cash revenue in the current fiscal as work on the first phase would be partially completed. The project will include commercial office space, IT development and a large area for industrial development, Malhotra said.

The MoU has been signed and Omaxe has started acquiring land. About 500 acres will be acquired in the first phase, of which 75 percent will be acquired by the developer and the remaining 25 percent will be provided by the state government, Malhotra said.