You are here: Home » Companies » News
Business Standard

Lodha group revives IPO plans; looks to raise Rs 3,000-6,000 crore

According to sources, Lodha Developers is in process of appointing merchant bankers

Press Trust of India  |  New Delhi 

IPO

Realty major has revived plans to launch an (IPO) and will soon approach market regulator with a fresh prospectus as it looks to raise Rs 3,000 to Rs 6,000 crore including by pre-IPO placement of shares. The Mumbai-based developer had filed draft red herring prospectus (DRHP) with in September 2009 to raise about Rs 2,800 crore.

The company got the nod in January 2010, but later shelved its plan to launch the IPO due to bad market conditions post the global financial crisis. According to sources, is in process of appointing merchant bankers. The company is targeting to raise between Rs 3,000 crore and Rs 6,000 crore through IPO and pre-IPO placement of shares, they added. A Lodha spokesperson declined to comment. In July-end, MD Abhishek Lodha had told PTI that the company is reviving IPO plans. "We are aiming for listing in calendar year 2018 and shall approach in the next 6-9 months," Lodha Group Managing Director Abhishek Lodha had said, but refused to share amount it wanted to raise. The group achieved sales bookings of about Rs 8,500 crore last fiscal from both domestic market and London despite slowdown in the real estate market. Recently, Lodha group raised an additional USD 125 million through bonds to pre-pay its costlier debt and reduce interest expense. Lodha groups subsidiary International Ltd had raised $200 million in March 2015 through issue of bonds with maturity in 2020. In July, Abhishek Lodha had said its Indian debt stood at Rs 14,500 crore, while the debt of the London business was about 300 million pounds. Privately-held Lodha Group is currently developing around 41 million sq ft area and has 31 ongoing projects in London, Mumbai Metropolitan Region, Pune, Bengaluru and Hyderabad. It has a land bank of 350 million sq ft for future development. The group had forayed into the London realty market in 2013 and acquired two prime sites in central London for an investment of about 400 million pounds. In London, the Lincoln Square project was launched last year and the second project No 1 Grosvenor Square, located in the heart of Mayfair, was launched in June this year. Lodha UK is eyeing a sales revenue of 1.5 billion pounds (over Rs. 12,000 crore) in the next three years from two ongoing housing projects in central London.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, December 21 2017. 20:36 IST
RECOMMENDED FOR YOU