MUMBAI – Real estate firm Mahindra Lifespace Developers Ltd may consider private equity funding for some of its projects, but has no immediate plans to dilute its stake, a top official said.
The Mumbai-based firm may need cash for developing a planned special economic zone in Maharashtra and townships in the future, but has enough cash for ongoing projects, Vice-Chairman Arun Nanda told analysts late on Tuesday.
The company has developed a 1,400-acre special economic zone (SEZ) in Chennai, while its second SEZ, spread over 3,000 acres at Jaipur, will start operations by July 2008.
“Chennai has started generating cash, while Jaipur is self sufficient. When we go to Maharashtra, we will need to look for funds,” he said.
The company has planned a 3,000-acre multi-product special economic zone at Karla, near Pune. While it has received approvals, land acquisition for the project may only start later this year, Nanda said.
“There is no intention for Mahindra group to dilute equity. At best, we might bring in some private equity,” Nanda told analysts. “We are a zero-debt at company level and currently hold cash reserves of 250 crores (2.5 billion rupees).”
The Mahindra group holds 51 percent equity in the company.
Last month, the company formed a joint venture with private equity fund ARCH Capital to develop a 55-acre township project, within its Chennai SEZ.
Mahindra Lifespace, which on Tuesday outlined an investment of 5 billion rupees for a 25-acre residential project in Nagpur, is also planning four other large integrated township projects. However, Nanda declined to give details of these projects