Gold Souk to float IPO in 2007

NEW DELHI: Bullish on the jewellery consumption in the country Aerens Gold Souk, a jewellery mall under Aerens group, is planning to come out with initial public offer next year to fund its "aggressive" expansion.

The company is also negotiating with US and UK-based real estate funds, which will be finalised by the end of this fiscal, said, Ahish Gupta, director, Aerens Gold Souk Internation Ltd..

"As per our vision plan we require 4 billion dollars (about Rs 18,000 crore) for expansion of our business. For funding of such magnitude we are looking at IPO," he said.

The company planned to float IPO toward the end of next year but the exact timing would depend on the market situation prevalent during that time, he said adding the company has not worked on amount that would be raised from the primary market.

The company would require about one billion dollar (about Rs 4,500 crore) for investment in land alone.

Besides IPO and real estate funds, the company is also exploring other sources for raising funds, including promoters contribution, private equity funding, debt and global real estate funds.

Talking about the expansion plan of the Gold Souk, Gupta said the company will expand its network by opening 100 jewellery malls in 100 cities in India and overseas in next 100 months.