There are rumours in the market that you have sold stake in your company to raise funds. Is it true?
It is not true. We have not sold any stake and we cannot because our shares are in a lock-in period. However, we did raise Rs 300-cr debt from IndiaBulls in December 2007 after pledging a small portion of promoters' shares of the company. Though the amount was raised for 36 months period, we have prepaid Rs 155 cr and are planning to retire the balance debt in near future.

With the market sentiment weak, has raising funds become difficult for real estate companies?
Yes, in general it is tough to raise funds. But for real estate company like ours, which has a strong balance sheet, raising funds is not a problem at all. However, rising interest rates are a major concern for the industry.

The real estate sector is witnessing a price correction now? Do you see the prices softening more?
It depends entirely on the region. If you look at Delhi and NCR, prices have already seen a correction of 15 to 20% and I don't see any further decline. But if you look at tier II & III towns, where development work has just started, there is an appreciation in prices at some places and it can grow further.

The realty sector has been seeing many PE deals. Is it because of the cash crunch or anything else?
It is a little tough time to raise debt. But private equity fund at SPV level is available in abundance.

What potential do you see in the India retail market in coming years?
The retail market has lots of scope in the coming years. More people are shifting to cities and growing urbanisation will propel the retail industry to newer heights. Already, organised retail is contributing about 6% in the $300-billion retail industry, which is expected to grow to 30% in the coming 10 to 15 years. Successful development of value-based concepts as well as development of retail space in smaller cities and towns will drive organised retail. The boom, 85% of which has so far been concentrated in the metros, is beginning to percolate down. The contribution of these tier II cities to total organised retailing sales is expected to grow.