Wednesday, October 18, 2006

B'lore knowledge SEZ to raise $25 mn


BOBY KURIAN & PREITI SHARMA SHAHANE

TIMES NEWS NETWORK[ WEDNESDAY, OCTOBER 18, 2006 02:58:18 AM]

BANGALORE: The 1,000-acre knowledge SEZ near Bangalore, Gandhi City for
Advanced R&D, is in early talks with global infrastructure funds like
the Singapore-based Jurong and Macquarie to raise $25 million by
divesting 5 to 10% stake.

Sources said the project was carrying a valuation of $500 million with
Avendus holding the mandate for raising funds. The project floated by a
group of technocrats led by Ivega founder Giri Devanur is expected to
spend $150 million in the first phase over the next three years.

The promoters are limiting the equity fund raising to $25 million as
they are likely to go in for debt financing of $100 million, and would
bring the remaining part of the cash for the first phase as seed capital
on their own or through associates.

“The idea is not to offload equity at the early stage, and wait for the
project to stabilize,” sources said.
However, sources declined to divulge names of the funds with whom
discussions were on. “‘We are talking to most of the infrastructure
funds from overseas and these are in early stage,” they added.

The project is expected to close the equity deal only after the State
clears the decks for land acquisition at Ramnagaram, which is about an
hour’s drive from Bangalore.

While Gandhi City has received the Centre’s clearance, the state
government deferred the decision to grant it regular clearance for want
of certain details. According to sources, the project will come up for
clearance at the next meeting slated for after a month.

Gandhi City is seen as a project that seeks to leverage Karnataka’s
quality manpower to emerge as a R&D hub for global players. The R&D SEZ
proposes to rope in leading pharmaceutical, automotive, aviation and
technology giants to put up their research and development units.

An incubator is also likely to be provided for scientists who lack
financial backing or infrastructure for research in their specific
areas. While Karnataka is witnessing a host of IT/ITeS projects, this is
the first such project to seek clearance under the SEZ scheme.

http://economictimes.indiatimes.com/articleshow/2191840.cms

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