Mumbai IT SEZ developers to raise Rs 1,000 cr

Megnasolace City Pvt Ltd, a special purpose vehicle set up for the Mumbai IT/ITeS SEZ project coming up at Thane, is looking at raising up to $216 million (Rs 999.45 crore) for funding expansion through the private equity route.

Sources familiar with the project said the SPV's promoters were looking at raising the additional capital to acquire up to 250 acres at Thane to complete the first phase of the SEZ project, for which IL&FS is an advisor. Inox Infrastructure Private Limited, a wholly-owned subsidiary of Gujarat Fluorochemicals Ltd, holds 50 per cent stake in Megnasolace.

According to sources, the company acquired 65 acres at Mogarpada near Thane, situated 23 km from Navi Mumbai, for $12 million,

"The funds will be employed in integrated development of IT, ITeS, R&D, commercial, residential and other aspects of the SEZ complex spread over 250 acres. About 35-40 acres of frontage outside the SEZ will be devoted to commercial activity. This would include multi-services SEZ focused on IT/ITeS and R&D," the sources added.

The company is said to be looking at an acquisition price of Rs 350-400 per square foot. The SEZ is planned as a comprehensive infrastructure for IT and ITeS companies with apartments, a private airport, hospitals, malls, schools and research laboratory, in the form of a supporting sub-structure.

"We have a mandate to develop at least 185 acres of the acquired land. Much of the developed space will be leased out. We are looking at a period of 4.5 years for Phase I of the SEZ. The entire project will be saleable in two years from now. The SEZ will provide employment to 12,000 people at the end of Phase I," sources said.