Simpex Infra - Foraying Into Real Estate
Simplex Infra - Considering Stock Split
Simplex Infrastructure is considering a stock split. Director at Simplex Infrastructure, Amitabh Mundhra, says we are strategically pursuing both in terms of buying land ourselves and in terms of forming a JV with land owner or real estate developer. There biggest revenue grosser is power with 30% contribution. They hope to raise around USD 200 million. According to him, there is a encourging scenario emerging out of real estate forays.
Excerpts from CNBC-TV18's exclusive interview with Amitabh Mundhra:
Q: How much money you are looking to raise and what will those funds be used for?
A: The reason, why we are meeting is to announce our annual results and take these resolutions on stocks split and fund raising. The growth that is happening is beyond expectations. Particularly, there is interesting scenario emerging out of the real estate space and the acquisition space. At some point in time, during the course of the year, we would need funds to go ahead in these areas that, we are actively perusing right now. I think we are taking our resolutions about raising USD 200 million. The quantum will only depend on how the future unfolds for us.
Q: What about your foray into real estate. Do you own land or are you in talk with joint ventures? How would you approach this real estate foray?
A: The current trend has started three-four years ago, when we started getting into construction of top class building and malls. At present Simplex is a company, which is constructing almost 15 million square feet of residential, commercial and other IT, spaces not only in India but also overseas areas. There is a great demand for us to get involved as part of the real estate space also. A lot of developers find that acquisition of land and retailing is there but, when it comes to construction and infrastructure designing, we actually have a hedge. With our expertise and experience gathered over the last few years this is a space, we should actively look into and which we will.
Q: Do you have real estate as part of Simplex Infrastructure in any part of the country?
A: Not as of now, but we are actively pursuing this area. We are strategically pursuing both in terms of buying land ourselves and in terms of forming a jv with land owner or real estate developer.
Q: What sort of an order book are you sitting on?
A: Currently, we are sitting on an order book size of about Rs 4500 crore. The relevant point here is not the size of the order book but the variety of order book .It is fairly easy to go and book orders at this point in time. We are constantly trying to endure our risk to see that the spectrum of order book improves. We are cherry picking the right projects. Recently, we have bagged two stadiums in Ranchi. In few days, we will be bagging few other orders in interesting spaces, which would open new arenas for the company.
Q: Could you give us a break-up in terms of how much of this would constitutes into your power segment, road segment, building and housing?
A: We actually operate out of 6-7 broad segments. Power being one of them. Ground engineering and piling, which was earlier our core sector. Industrial construction and marine, housing and urban infrastructure and transportation, which includes roads and railways. The biggest revenue grosser for us is power, which is about 30%. The rest if it is evenly divided. No sector gives us more than 20% and less than 10%. So it is a very healthy mix.
Excerpts from CNBC-TV18's exclusive interview with Amitabh Mundhra:
Q: How much money you are looking to raise and what will those funds be used for?
A: The reason, why we are meeting is to announce our annual results and take these resolutions on stocks split and fund raising. The growth that is happening is beyond expectations. Particularly, there is interesting scenario emerging out of the real estate space and the acquisition space. At some point in time, during the course of the year, we would need funds to go ahead in these areas that, we are actively perusing right now. I think we are taking our resolutions about raising USD 200 million. The quantum will only depend on how the future unfolds for us.
Q: What about your foray into real estate. Do you own land or are you in talk with joint ventures? How would you approach this real estate foray?
A: The current trend has started three-four years ago, when we started getting into construction of top class building and malls. At present Simplex is a company, which is constructing almost 15 million square feet of residential, commercial and other IT, spaces not only in India but also overseas areas. There is a great demand for us to get involved as part of the real estate space also. A lot of developers find that acquisition of land and retailing is there but, when it comes to construction and infrastructure designing, we actually have a hedge. With our expertise and experience gathered over the last few years this is a space, we should actively look into and which we will.
Q: Do you have real estate as part of Simplex Infrastructure in any part of the country?
A: Not as of now, but we are actively pursuing this area. We are strategically pursuing both in terms of buying land ourselves and in terms of forming a jv with land owner or real estate developer.
Q: What sort of an order book are you sitting on?
A: Currently, we are sitting on an order book size of about Rs 4500 crore. The relevant point here is not the size of the order book but the variety of order book .It is fairly easy to go and book orders at this point in time. We are constantly trying to endure our risk to see that the spectrum of order book improves. We are cherry picking the right projects. Recently, we have bagged two stadiums in Ranchi. In few days, we will be bagging few other orders in interesting spaces, which would open new arenas for the company.
Q: Could you give us a break-up in terms of how much of this would constitutes into your power segment, road segment, building and housing?
A: We actually operate out of 6-7 broad segments. Power being one of them. Ground engineering and piling, which was earlier our core sector. Industrial construction and marine, housing and urban infrastructure and transportation, which includes roads and railways. The biggest revenue grosser for us is power, which is about 30%. The rest if it is evenly divided. No sector gives us more than 20% and less than 10%. So it is a very healthy mix.
posted by Raj @ 12:05 PM
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