Real estate firm Kalpataru Ltd is considering a pre-IPO placement to raise as much as Rs 200 crore that may bring down the size of its proposed public float where the company is targeting to scoop around Rs 1,008 crore.

The money is proposed to be used to finance the construction and development costs of certain projects (Rs 410 crore); investment in associate firm Ananta Landmarks Private Limited for acquisition of land and associated development rights (Rs 294 crore) besides repayment of existing loans(Rs 185 crore).

The flagship real estate company of the Kalpataru group of companies is focused on development of premium residential, commercial, retail, integrated townships, lifestyle gated communities and redevelopment projects primarily in the Mumbai Metropolitan Region and Pune, although it is also undertaking projects in cities such as Hyderabad, Surat, Nagpur, Jaipur and Udaipur.

For the year ended March’10, the firm had total income of Rs 616 crore with net profit of Rs 104 crore.

The group has interests in real estate development, property and project management, engineering, procurement and construction contracting for power transmission and infrastructure projects including road projects, warehousing and logistics.

It was founded by Mofatraj Munot four decades back and has group companies such as Kalpataru Power Transmission Limited and JMC Projects (India) Limited that are both listed on the stock exchanges and have a combined market cap of around Rs 3,400 crore ($ 740 million).

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