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Home developer Isprava eyes Rs. 150 cr from PE funds
The Hindu Business Line  |  May 19, 2017

Rajesh Kurup | Mumbai

Isprava Vesta, a Mumbai-based residential developer, is looking to raise about Rs. 150 crore from private equity firms, of which a bridge round of about Rs. 50 crore would be raised soon.


The company, which focuses on holiday home market (second homes) in India, will dilute about 15-20 per cent stake in exchange of the funds. A part of the proceeds would be used for acquisition of land in Goa, Nilgiris and Alibaug, and remaining for its company’s hospitality business and working capital.


“The current one is a bridge round where we intend to raise Rs. 50 crore in the next few months, while the remaining Rs. 100 crore would be raised over the next two years. We have not yet started talks with anyone PE firm, but the aim is to start talks in the last two quarters,” Nibhrant Shah, founder and Chief Executive Officer at Isprava told BusinessLine in an interaction.


Isprava will first talk to international funds both in the luxury space and real estate space, and then to Indian funds.


“Second homes are doing well. In the primary market the sentiment is hit and in the holiday home market at the high-end level, there is a limited supply and is doing much better in the past few months,” Shah said.


Isprava had earlier raised Rs. 11 crore from Godrej Industries, Anand Piramal (promoter of Piramal Group and son of billionaire Ajay Piramal) and other high networth individuals. Nadir Godrej, managing director of Godrej Industries, is also a director with the company.


Sri lanka ahoy!


The company is looking at expanding its presence to Alibaug in Maharashtra and Sri Lanka in the next year or so.“Sri Lanka is an up and coming market. The reason for developing in Sri Lanka is because we have a lot of foreigner clientele who find it tough to own (property) in India,” Shah said.


By the end of this financial year, Isprava will have developed a total of about 30 projects with nearly 1.5 lakh to 1.70 lakh sq. feet of developed area. The company counts Sunil Gavaskar and founders of Infosys and Spice Jet amongst others as clients.