Home >companies >news >Lodha Developers files for IPO, to raise Rs3,750 crore

Mumbai: Real estate firm Lodha Developers Ltd on Thursday filed its draft documents for an initial public offering (IPO) with the capital markets regulator.

The proposed IPO will see the company raise Rs3,750 crore through a primary share sale, while the promoters of the company are looking to offload 18 million shares.

Lodha Developers was founded in 1995 by Mangal Prabhat Lodha.

The firm proposes to use the proceeds of the IPO to pare debt.

As of 31 December, the realtor had 37 ongoing projects, of which 35 were in India and two in London, according to the draft IPO documents filed by the company.

These projects account for a developable area of 33.80 million sq. ft, of which 31.95 million sq. ft represented projects located in the Mumbai Metropolitan Region.

Lodha’s residential portfolio comprises affordable housing and premium housing consisting of luxury, high-end and aspirational developments.

Lodha, which says it is the largest real estate firm in terms of sales, has around Rs16,500 crore of debt even as net sales are expected to have touched Rs8,500 crore in 2017-18. For the nine months to December, it reported a revenue of Rs6,634.5 crore.

In an interview in February, managing director Abhishek Lodha said the firm plans to pare debt this year, after bringing down borrowing cost in the past couple of years. In the past two years, Lodha has focused on reducing the cost of debt, and has managed to do so by over 1%.

Analysts said an IPO would be the ideal way to cut the firm’s high debt and help scale up its growth story.

This is the second time Lodha has filed for an IPO. In September 2009, it filed its draft red herring prospectus to raise Rs2,800 crore. Though it received the Securities and Exchange Board of India’s nod in early 2010, the developer shelved its plan due to poor market conditions.

The last time real estate firms hit the primary market was in 2010.

Pune-based Paranjape Schemes filed for an IPO with Sebi in July 2015 and the proposal was cleared in December, but eventually the company didn’t go ahead with it.

Bengaluru-based developer Shriram Properties Pvt. Ltd also plans to raise around Rs1,000 crore from an IPO, managing director M. Murali told Mint earlier this month.

Another Mumbai-based developer, Puranik Builders Pvt. Ltd, has started work on its initial share sale, Mint reported on 29 January.

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