Realty major Lodha Developers sold properties worth about Rs 42 billion in the first half of this fiscal and its sales may cross Rs 90 billion in 2018-19 on improved demand for affordable and mid-income housing, a top company official said.
The Mumbai-based firm plans to hit the capital market with an initial public offer (IPO) of about Rs 55 billion. It got approval from Sebi in July.
"Housing demand in affordable and mid-income segment has improved. Our sales bookings and collections were good in the first six months of this financial year," he told PTI.
The company has achieved sales of around Rs 42 billion during April-September period of 2018-19 fiscal year. Sales collections from customers stood at nearly Rs 55 billion during the period.
"If sales momentum continues, our sales and collections may cross Rs 90 billion and Rs 100 billion, respectively, from India business," he said.
"We expect 10-12 per cent growth in sales and 14-15 per cent growth in collection over last year," Lodha said.
Quoting data complied by a research agency from the Maharashtra real estate regulator's website, Lodha highlighted that the company had the highest 18 per cent market share in MMR in terms of sales during August 2017 to July 2018.
"Our market share was equivalent to other nine developers in top 10," he added.
He also noted that the demand is shifting towards organised and credible developers as the inventories with them are lower.
Going forward, he said the company would also focus on expanding its business in other real estate verticals such as shopping malls and warehousing.
Meanwhile, Lodha Developers revived its IPO plan in April and filed the draft red herring prospectus (DRHP) with Sebi seeking approval to float an initial share-sale. In July, it got market regulator Sebi's nod.
This would be the second attempt by Lodha Developers to launch a public issue and list its shares on the stock exchanges.
According to the latest DRHP filed by Lodha, the company will issue fresh shares worth up to Rs 37.5 billion. The promoters will sell up to 1.8 crore shares through the Offer For Sale (OFS) route.
The company is also considering a pre-IPO placement of up to 9.5 million equity shares for cash consideration aggregating up to Rs 750 crore, the document said.
From the net proceeds of fresh issue of shares, Lodha would utilise Rs 33 bn to retire its debt, which stood at nearly Rs 180 bn as of January-end this year.
The privately-held Lodha Group, which was founded in 1995 by Mangal Prabhat Lodha, had completed projects with developable area of 50.49 million sq ft till December last year.
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.
Lodha Developers had posted a 32 per cent rise in its consolidated net profit at Rs 7.90 bn during the last fiscal from Rs 5.99 bn in the previous year.
Total income rose by 22 per cent to Rs 97.00 bn in 2017-18 from Rs 79.57 bn in the previous year.