Nano City Haryana to raise funds through equity

Nano City Haryana Infrastructure Ltd is looking to raise funds through private equity placement for the development of its proposed Knowledge City coming up in Panchkula. "We are evaluating the options for raising funds through private equity. . .the money will be utilised in acquiring land as well as the development of project (Nano City)," company's managing director Naval Bhatia said Wednesday.

However, he declined to divulge details regarding the quantum of money to be raised through private equity.

The company is hopeful of acquiring 600 acres of land by January 2010.

"We have already signed an agreement for buying 375 acres of land and we strongly feel that we will be able to buy 600 acres of land by January next (at the proposed site)," he said.

The company has also deferred its plans to launch an IPO for this public-private partnership project till 2013.

"Initially, we had plans to come out with an IPO by 2011...but now we feel we will launch our IPO by 2013 because of the adverse impact of recession in last one year," he said.

Expected to be completed in 10 years, the project seeks to attract world-class companies involved in creation of intellectual property, software development, nano sciences, drug discovery, bio-technology, energy research and semiconductor research.

Real estate company Parsvnath Developers Ltd had picked up 38 per cent stake in Nano City project last year, in which it has proposed an investment of Rs 400 crore (Rs 4 billion) as equity and debt.

State-owned Haryana State Industrial and Infrastructure Development Corporation also has 10 per cent stake in the project, while 52 per cent lies with promoter Sabeer Bhatia, creator of hotmail.