Mumbai, Dec. 18: Textiles maker Alok Industries plans to raise Rs 600 crore by offloading a 20 per cent stake in subsidiary Alok Infrastructure to a private equity player.
The money will be used to fund its realty projects in the country. The company also plans to list Alok Infrastructure later.
Sunil Khandelwal, chief financial officer of Alok Industries, said, We are looking at unlocking value for shareholders with this move. Apart from the 183-acre textile SEZ at Surgani in Silvassa, we have an additional land bank of 250 acres in Silvassa. We will be looking to develop this land for residential and commercial purposes.
These projects will be undertaken by Alok Infrastructure.
The company also plans joint ventures in other parts of the country. We may look at the hospitality sector too through a joint venture, added Khandelwal. The company is already involved in a few realty projects in Mumbai.
Earlier, the company had acquired office premises of around 575,000 sq ft at Lower Parel in Central Mumbai, in the Peninsula Business Park office complex being developed by Peninsula Land Holdings at Dawn Mills.
Alok also bought office premises of about 57,000 sq ft at Ashford Centre at Lower Parel, Mumbai, which is being developed by Ashford Universal. These properties were acquired at Rs 18,000 per sq ft.
The company plans to spend Rs 4,000 crore on its expansion plans over the next seven years. Of this, Rs 2,000 crore will be used in the first three years.
There are four phases to the expansion plan. We will complete three phases by March 2008 and then the last phase, which will entail an investment of around Rs 1,180 crore, will be completed by March 2009, Khandelwal said.
The company recently entered into a licensing agreement with Peacock Alley, the Dallas-based premium bed and bath brand. The company plans to launch the brand either through its own speciality stores or through retail chains such as Shoppers Stop. We could be looking at 15 to 20 outlets for the brand in the coming months, he added.