Signs of stress: As fund flows dry up, Lodhas to sell assets to cut debt

To make matters worse, the IL&FS crisis also coincided with a weak stock market - leading to Lodha Developers dropping its share sale plan.

With a continuous flow of funds from non-banking finance companies, coupled with land in the world’s most expensive real estate market, Mumbai-based Lodha Developers was on a concrete wicket till recently.  

Backed by a massive advertising blitz, with superstars as its brand ambassadors, the developer started new projects at a feverish pace, even as it raised more and more debt to fund them. 

By March this year, the company’s debt grew 21 per cent to Rs231 billion, but its sales jumped 25 per cent to Rs96.7 billion as well compared to the previous fiscal. An initial public offer (IPO) was to bring