Indian developer plans foray into Dubai's real estate market

27 January 2006

DUBAI — D.S. Kulkarni Developers Ltd. (DSKDL), a leading Indian property developer, is eying Dubai to launch residential projects as part of an overseas expansion drive.

Chairman of the group, D. S. Kulkarni, who was in Dubai, said the company is also looking to enter the US property market in a big way following the setting up of a subsidiary.

The company, which is set to tap the capital market to mobilise expansion funds through a composite issue of 1,10,00,000 equity shares of Rs10, is currently developing and executing projects in prestigious locations in Mumbai and Pune with over 3.9 million sq.ft. under construction. Projects worth Rs6.57 billion are under various stages of development and execution and targeted to be handed over by 2009, he pointed out.

The company, ranked as the second fastest growing construction firm by "Construction World" in 2004, is entering Bangalore and is currently in negotiation for more than five million sq.ft. of land. It also proposes to expand into Hyderabad, Goa and Delhi.

The composite issue comprises a rights issue of 55,00,000 equity shares of Rs10 each for cash at a premium of Rs100 per equity share to the existing shareholders in the ratio of one for every two shares; and public Issue of 55,00,000 shares of Rs10 each for cash at a price to be determined by the book building route. The book running lead managers are A.K. Capital Services Ltd. and Indian Overseas Bank.

He said DSKDL seeks to further enhance its position in the housing industry by acquiring more properties at Pune, Mumbai, Bangalore, Hyderabad, New Delhi.

It has a string of prestigious projects under implementation including DSK Vishwa, a mega township spread over 110 acres at Pune, designed by world-renowned architect Padmashree Balkrishna Doshi.