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Lodha Developers IPO looks to defy poor scorecard of realty companies

Its IPO will be the first by a real estate company in eight years and only the sixth Rs10-billion-plus offering by a home developer

Samie Modak 

benami, real estate, realty, houses, home loan
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is aiming to defy the poor scorecard of with its proposed Rs 55-billion (IPO).

The Mumbai-based developer known for its tall residential buildings has filed its offer document with Its will be the first by a company in eight years and only the sixth Rs10-billion-plus offering by a home developer. It is no secret that Dalal Street has been averse to IPOs given their poor show amid stagnation in realty prices.

Even after several years, most stocks are currently below their listing day price. Oberoi Realty, Prestige Estates, and are few exceptions. But, returns of these companies too has been sub-par. At least half a dozen companies, including DB Realty, and DLF, are trading at a fraction of their listing day price.

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The difference between all-time high and all-time low prices of is starling. While most stocks have rebounded from their record lows, the will do little to instil confidence.

First Published: Sun, April 29 2018. 21:14 IST
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