First Indian real estate firm to list on Euronext

Yatra Capital is to be the first Indian real estate company to list on the Euronext stock exchange following the placing of 10 million ordinary shares of EUR 10 each. This gives it an initial market capitalisation of EUR 100 mln. Once bank borrowings are taken into account it will have around EUR 200 mln to invest.

Yatra Capital will be both the first India-focussed investment company and the first Jersey-incorporated company to list on Eurolist by Euronext Amsterdam. Dealing in the shares is due to begin on December 7. Fairfax I.S. is the sole placing agent, while ABN Amro bank is listing and paying agent for the company.

The company was established following the Indian Government's recent liberalisation of the foreign direct investment guidelines to provide international investors with an opportunity to capitalise on the real estate market in India, where the economy is growing rapidly.

Yatra Capital said it will target capital growth for its investors in excess of 25% per annum through the ownership, development and sale of high quality residential, commercial and retail properties in India. Investments will be diversified across different asset classes and locations in India with a primary focus on tier II and tier III cities. 'The company will also consider select strategic opportunities in tier I cities where the directors believe there is value to be gained,' according to Yatra's statement on the listing.

Saffron Capital Advisors will advise Yatra Capital. 'Through its extensive network in India, Saffron has already established a pipeline of potential investments for the company with a value of around EUR 390 mln and it expects the company to be fully invested in around 12-18 months,' Yatra Capital said.