Bata may sell Riverside project stake

January 13, 2010

Bata India may sell some of its stake in the integrated township coming up at Batanagar on the fringes of Kolkata, according to industry grapevine.

The stake could be valued at Rs 8-9 crore per acre and the total deal size is expected to be above Rs 100 crore, the DNA has reported, citing unnamed market sources.

However, the news could not be confirmed.

Bata India is developing the Calcutta Riverside project through two special purpose vehicles. An integrated township is being developed on 237 acres through a joint venture, Riverbank Developers, in which Bata holds 50 per cent and the Calcutta Metropolitan Group the balance 50 per cent.

Another 25 acres are being developed into an IT park/special economic zone through a second SPV, Riverbank Holdings, in which Riverbank Developers holds 50 per cent and the balance is with PE fund Yatra Capital.

The Calcutta Metropolitan Group, in turn, is a 50:50 joint venture between the United Credit Belani Group and the Kolkata Metropolitan Development Authority.

According to market sources, the stake sale could happen in the integrated township project, in which Bata holds 50 per cent. “The stake could be valued on per-acre basis valuation,” a market source was quoted as saying.

However, a Bata official said, “We do not comment on market speculations.”