Century Real Estate drops IPO plans, raises around $26.5M via NCDs to develop projects

Bangalore-based private realtor Century Real Estate has postponed its plans of an initial public offer to raise around Rs 1,000 crore, and has raised Rs 165 crore (around $26.5 million) through non-convertible debentures (NCDs) for the development of a couple of projects in the city, according to a report by Mint citing sources.

ECL Finance, the non-banking financial services unit of Edelweiss Financial Services, has lent the money, which would be used to develop Century Ethos, a residential development at Bellary Road, and Century Eden, a plotted development at Doddaballapur in Bangalore, the paper said.

A spokesperson at Edelweiss Financial Services confirmed the development without divulging further details.

While the cost for the development of Century Ethos will be around Rs 2.5 crore onwards, Eden plots are priced at Rs 17 lakh onwards.

This would be the second time Century Real Estate dropping its IPO plans after its initial attempt in 2007. Last year, the company again announced plans to go public to raise money to bring down its debt on books and for growth.

Century Real Estate is one of the largest land banks in south India and develops hotels, office buildings, residences, educational institutions and integrated townships. The company was founded in 1973 and is based in Bangalore, Karnataka.

It claims to be the largest owner of real estate in Bangalore with a land bank in excess of 3,000 acres, representing more than $2 billion in asset value and a development portfolio of over 10 million sq ft comprising hotels, office buildings, residences, educational institutions and integrated townships spread across South India.

(Edited by Joby Puthuparampil Johnson)

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