Orbit Corporation eyes NYSE listing within three years, MD says
Orbit Corporation, the Mumbai, India-based real estate developer, aims to list its shares on the New York Stock Exchange (NYSE) as it seeks capital for expansion, said Managing Director and CEO Pujit Aggarwal.
Orbit Corporation, the Mumbai, India-based real estate developer, aims to list its shares on the New York Stock Exchange (NYSE) as it seeks capital for expansion, said Managing Director and CEO Pujit Aggarwal. The INR 6.79bn (USD 145m) market cap company seeks to raise about USD 1bn through the overseas listing, said Aggarwal. Orbit, which is already listed on the Bombay Stock Exchange and National Stock Exchange (NSE) in India, could list on the NYSE in two to three years. The company would appoint financial and legal advisors six months prior to the proposed issue, said Aggarwal. Listing on the NYSE would give the company a considerable presence in the global market and would reach various strata of investors globally, he said.
The company, which had sales of about INR 5bn in the year ending March 2010, is targeting INR 45bn in topline in the next four to five years, said Aggarwal. Most of the projects are under execution and few of them would be completed over the next five years.
The company’s cash flow will increase substantially once projects move towards completion, claimed Aggarwal. The company is growing at 40% CAGR currently, he added.
Orbit’s one completed project had 20% premium on costs, while it is targeting 30-40% profitability for its projects under development.
Orbit, which is engaged in developing luxury residential properties in Mumbai, also plans to start franchising its brand to tap other metro cities over the next one year, said Aggarwal. Orbit would have no investments in these projects but would offer the brand and expertise to the franchisee partners to offer the Orbit experience in big metro cities like Delhi, Kolkata and Bangalore, he pointed out.
It is already in preliminary talks with a few real estate developers for franchising, said Aggarwal.
Value GBP 628m (Target issue size)
Stake Value between 10% and 29% inclusive