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1 BRIGADE BRIGADE INSIGHT GROUP Vol. 11 No. 3The Newsletter of the Brigade Group Released in December ’07 Inside... 2 Calendar 2008; Music CD 3 30-sec TVC; Corp. Film; Award for Brigade’s Director 4 Inside Brigade 5 Brigade Annual Day; Young Achiever Award 2007 6 Brigade Hospitality 7 Brigade Foundation 8 Interview with Dr Nandakumar Jairam 9 Bangalore and Finance Info Part of a clay mural by Yusuf Arakkal (from the Brigade collection) 10 The Story of Heggodu For private circulation only Brigade IPO : a major milestone Brigade’s upcoming In a company’s history, transition of the Company by way of land ac- The Global Co-ordinators Holiday Inn... from a private limited company to quisition and meeting construction and Book Running Lead Manag- a public limited company is a most and development costs in relation ers (GCBRLMs) to the issue are important event. to our ongoing and forthcoming J.P. Morgan India Pvt. Ltd and Brigade Enterprises Ltd has real estate and hospitality projects. Enam Securities Pvt. Ltd and the reached this milestone and set Brigade entered the capi- Book Running Lead Manager the path to a new trajectory by tal market with its initial public (BRLM) is ICICI Securities Ltd. entering the capital market with offering of 16,624,720 equity The bids / issue opened for sub- an initial public offering. This was shares (each of Rs 10) for cash scriptions on 10 December and preceded by weeks of hard work through the 100% book build- closed on 13 December. The price Jack Hou, Director, Legal and Corporate Counsel, Greater China, InterContinental Hotels and excitement. We look forward ing process. The issue comprised band fi xed was Rs 351 to Rs 390 Group Asia Pacifi c, and M.R. Jaishankar, CMD, to the challenges of growth across a green-shoe option of up to per share. The initial public offer- Brigade Group, after signing the agreement. all our domains. 2,493,708 shares. The shares are ing was oversubscribed more than Brigade has entered into an The main objective of the issue proposed to be listed on the BSE 13 times and the company issued agreement with InterContinental is to fuel the future growth plans Ltd and the NSE of India Ltd. shares at Rs 390 each. Hotels Group (India) to manage its proposed Holiday Inn Hotel Rehan Poncha and Team Ashwa: near Devanahalli International Brigade bags CW Top Builder Award Airport, Bangalore. state-wide Young Achievers 2007 The winners of the Young Achiever 2007 award, ...and Sheraton Mysore instituted by Rotary Bangalore Midtown and Expanding its operations beyond Brigade Group, were presented their awards at Bangalore, Brigade has entered a function held at the MLR Convention Centre, into an agreement with Starwood J.P. Nagar, on 26 October. For more details turn to page 5 Asia Pacifi c Hotels & Resorts to manage its proposed hotel in Mysore. The hotel will run under the brand ‘Sheraton’ and will be known as Sheraton Mysore. For more details turn to page 6 Shri S.M. Krishna, Governor of Maharashtra, presents the Construction World Top Builder Award to Manjunath Prasad and Venugopal, who receive it on behalf of Brigade Enterprises Limited at Brigade is 21 ! ITC Grand Central, Mumbai. Brigade Group commenced Jaishankar honoured at ET ACETECH 2007 Awards operations in 1986. This year we celebrated our 21st birthday: M.R. Jaishankar, CMD, Bri- on 6 October, at the gade Group, was recognised as MLR Convention Centre in the one among top 15 outstand- Brigade Millennium enclave. ing professionals in the fi eld of For more details turn to page 5 construction in the country at The Economic Times ACETECH 2007 Awards function held at Brigade Group Sahara Star Hotel, Mumbai on 1 November 2007. Scholarships Bhaskar Das, Executive President, For more details turn to page 2 For details turn to page 5 Times of India, presents the award to Jaishankar in Mumbai brigadegroup.com 22 EDITO R’S NO TE They say the number 13 is lucky for some. It annum appears quite feasible. was for Brigade Group ! Our maiden public issue The real estate market in the of equity shares was oversubscribed 13 times on country in general, and Ban- The underlying theme of this issue of Insight 13 December, the closing date of our IPO. It’s a galore in particular, is overall seems to be milestones and beginnings. satisfying oversubscription, especially since the healthy, with the forces of Brigade Enterprises Limited has reached fi nal clearances and permissions were received demand and supply fi nding a yet another milestone in its history: we are only on 30 November. In just 13 days (!), the IPO good equilibrium. As long as was marketed, issue opened and closed. the Indian economy continues now a public limited company and look It was an interesting, challenging and taxing to maintain the current GDP growth rate of 8+%, forward to the exciting challenges ahead. process—involving interactions with the media, the real estate sector will continue to grow. Just Our calendar for the coming year centres stock brokers and research analysts; road shows look towards China to know what effect sustained around the subject of North Karnataka, a at Singapore, Hong Kong, London, New York, double digit growth rates over a 25-year period Boston, Mumbai, Ahmedabad, Baroda, Banga- will have on the economy of a country and the region rich in history and natural beauty. In lore, Chennai, Chikmagalur, Mysore and Shimoga; prosperity of its citizens. continuation of a much appreciated recent and numerous one-to-one meetings with major “tradition”, we have produced another gift national and international institutional investors CD of vintage Hindi fi lm music; a pleasant and HNIs. Infrastructural defi ciencies and bottlenecks are the Overall, it was a great team effort involving biggest concern of international and national in- trip down memory lane. investment bankers, legal counsels (national and vestors and corporates. This will impede our coun- This issue also heralds another kind of international), registrars to the issue, bankers, ad try’s ability to sustain growth, and good growth beginning: the New Year. agencies, friends, well-wishers and our Independ- rates, year on year. While Indian entrepreneurs are ent Directors, who helped in tough situations; and capable of dreaming big and realising their dreams, For last year’s words of course, the dedicated IPO core team at Bri- they face bureaucratic hurdles, lack of vision belong to last year’s language. gade, supported by all Brigadiers. It was especially and more particularly, insuffi cient planning and gratifying that the Staff Reservation Quota was co-ordinated efforts by different governmental And next year’s words oversubscribed, which is unusual. Three cheers to agencies. But for the quid-pro-conditionalities for await another voice. everyone !!! the release for JNNURM (Jawaharlal Nehru National Being a listed company will increase our Urban Renewal Mission) funds, many civic authori- And to make an end responsibilities multifold. What we say and do is ties would not have been able to make the few under public gaze and open to question. It will improvements currently seen in urban infrastructure. is to make a beginning. be a great challenge to achieve quarter on quarter —T.S. Eliot growth, due to the very nature of the property development industry. It will be my personal en- The coming year will be very important, nationally We wish all of you the very best for deavour—and that of all Brigadiers—to work dili- and internationally, as major political changes are 2008. May it bring you nothing but good gently to meet the expectations of investors who expected in India and USA. One hopes 2008 will fortune and good health. have reposed confi dence in us, and other stake- usher in good cheer for one and all. Here’s wish- holders like customers, associates and staff. ing all readers Season’s Greetings and the very best in the New Year ! Have real estate prices peaked ? While one cannot —M.R. Jaishankar, expect the 40%-50% jumps seen during 2005-06, CMD, Brigade Group an average appreciation of around 15% per Contd from Pg 1... ... Jaishankar honoured at The Economic Times ACETECH 2007 Awards The function, termed “The Leaders of Indian professional ethics, achievements and rare Infrastructure and contribution in the fi eld of construction and Construction”, felici- environment friendly architecture. tated architects and To quote from the citation awarded to real estate develop- him, “Your achievement for being the pioneer Discover the wonders of ers for their immense in incorporating eco-friendly measures like contribution to the rainwater harvesting and recycling systems— fi eld of construction not to forget the ‘integrated enclave’ concept North Karnataka and environment- in Bangalore—with the corporate philosophy Art in its different forms—murals, sculptures, friendly architecture. ‘for a better quality of life’, has entitled you for paintings, photography, heritage sites—have Jaishankar was this honour.” always been the theme of our calendars. This The ET ACETECH 2007 trophy appreciated for his year, we explore North Karnataka…and discover its many marvels. While South Karnataka is familiar territory to most, North Karnataka has been a bit of a mystery to the uninitiated. However, the treasures one fi nds here are truly awesome. The pictures in the On the occasion of our 21st anniversary (and in calendar were selected continuation of a tradition that began just last from the portfolios year), Brigade presents “21 Songs”, a music CD of photographers with 21 vintage Hindi fi lm songs. Handpicked by H. Satish, T.N.A. M.R. Jaishankar, these unforgettable tunes and lyrics Perumal, V.