DS Kulkarni Public Issue opens April 25, price yet to be fixed

New Delhi, Apr 12 (UNI) Riding the boom in the real estate and construction business, Pune-based D S Kulkarni Developers Ltd.

(DSKDL) is entering the capital market with a follow-on public issue of 55 lakh Equity Shares of Rs 10 each for cash at a price to be determined a day before the opening of the issue by a 100 per cent Book Building Route.

The issue, part of a composite issue of 1.10 crore Equity Shares, comprises promoters contribution of 6,40,155 Equity Shares, a reservation for Employees of 1.10 lakh Equity Shares, resulting in a net offer to the public of 47,49,845 Equity Shares.

The Issue will open on April 26 and will close on May 3, 2006 The issue is aimed at raising capital to finance the development of company's nine projects comprising 39 lakh sq. ft. which are under construction and are at various stages of development and targted to be handed over by 2009.

The total estimated cost of these projects located in Mumbai, Pune and Bangalore is Rs 555.23 crore and DSKDL has already deployed Rs 115.79 crore till February 28, 2006.

''The housing industry is poised for rapid growth on account of a resurgent economy, growing middle class, shift from joint to nuclear families, increasing percentage of population in the age group of 24-25 years, shift towards own house and increasing participation by banks and housing finance companies in providing loans and fiscal incentives,'' said Mr D S Kulkarni, Chairman and Managing Director of DSKDL, while talking to mediapersons here today.

DSKDL has 95 per cent activity in housing construction and 5 per cent in commercial development, he added.

The company's business strategy focuses on the middle-income group, housing projects, which have high selling potential, Mr Kulkarni said.

The Company has received ISO 9001-2000, ISO 14001 and OHSAS 18001 certification for best practices. It is ranked as the second fastest groowing construction company in NICMAR and Construction World in 2004.

DSK Group has constructed more than 15,000 homes totalling over 12.5 million sq ft in Mumbai and Pune. A profit making company since inception and has been paying dividend for the last three years.

The Company's shares are listed on Bombay stock Exchange and National Stock Exchange and the Equity Shares to be issued would also be listed on these exchanges.

UNI BBS SR HT1550