Puravankara Limited (NSEI:PURVA), a wholly-owned subsidiary of Puravankara Ltd, is in talks with HDFC Capital Advisors to raise more than INR 10.00 billion to finance its growth plans. The proposed fundraise will be in the form of equity and the money will be used to build mid-income homes in the southern markets of Bangalore, Chennai, and Hyderabad, and to enter new markets.?Both the partners are in active discussion, and the fundraise is likely to be concluded over the coming quarters, depending on the terms of the deals. They are likely to float a platform for acquisition and building residential assets,?

said people aware of the discussions. HDFC Capital Advisors is likely to invest in a new platform with Provident through HDFC Capital Affordable Real Estate Fund 3 to implement the realty projects.?The investment is expected to result in a gross development value (GDV) of over INR 35.00 billion, with Provident looking to deepen its presence in the existing regions and also deploy capital by exploring more property markets," one of the persons cited above said requesting anonymity. Provident is also in the process of entering new cities like Mumbai and Pune as part of its strategy to double its residential portfolio to more than 20 million sq ft from the current 13.82 million sq feet.

Provident contributes half of the business of the parent company and is looking to grow its portfolio multiple folds with the domestic residential sector at an all-time high, a second person said. HDFC Capital could not be reached for comment while Puravankara declined to comment.