Indian realty companies building up over Rs 15,000 crore IPO pipeline

Indian real estate, often described as an unorganised sector, is busy planning initial public offerings (IPOs). Several companies in the sector are firming up their strategies to tap the capital market over the next few months to raise more than ₹15,000 crore through IPOs, sources said.

 

Noida-headquartered BPTP Ltd, M3M group-owned Smartworld Developers, Gaursons India and Mumbai-based Wadhwa group are among those planning to list their companies either in FY26 or FY27, according to multiple people aware of the discussions.

 

BPTP Ltd is learnt to have appointed bankers with plans to raise more than ₹5,000 crore, according to senior industry executives who did not wish to be named. “The amount to be raised is under discussions but it has started the process of filing the draft red herring prospectus (DRHP),” a source with direct information said.

 

BPTP had outlined plans of public listing back in 2010, when promoters had identified raising ₹1,500 crore from a 10-25 per cent stake dilution. The company had also filed its DRHP at that time with the goal of using the funds for upcoming projects as well as retiring debt. 

 

Gurugram-based Smartworld Developers is looking to raise in the range of ₹4,000 crore to ₹6,000 crore from a public listing, said two people aware of the development. The company has begun preparation for filing the DRHP within the coming three to six months.

 

“The timing (of the IPO) may be decided based on market conditions, but the process has begun,” said one of the sources, asking not to be named.

 

Smartworld Developers, which is partnering with Tribeca Developers, the licensed partner for Trump Organization in India, is building Trump Residences in Gurugram’s Sector 69 with an investment of ₹1,200 crore over five years.

 

Mumbai-based Wadhwa group is also learnt to be taking the IPO route to raise between ₹2,000 crore and ₹2,500 crore. It is learnt that bankers have been appointed and a DRHP is in the works. The company, which has prime properties in the financial capital’s commercial hub Bandra Kurla Complex, may look at diluting 15-20 per cent equity, said one of the sources.

 

Another North Indian real estate major Gaursons India is also looking to go public. Manoj Gaur, chairman & managing director, Gaurs Group, told Business Standard in response to queries: “The current real estate market offers significant momentum for robust growth, and we are strategically positioned to capitalise on it. Our preparations for the IPO are progressing steadily, and we aim to launch it within this financial year or by next year.” 

 

“Our residential business continues to be a key revenue driver, with the overwhelming response to our recent luxury project launches clearly underscoring the enduring demand for quality real estate. We also have multiple high-end luxury launches lined up, and we are committed to continuing to set new benchmarks in the sector.”

 

The Ghaziabad-based company will require over ₹3,000 crore for building a 5 million-square-foot mixed-use commercial project as well as for acquisition of some land parcels, Gaur had said earlier.

 

Bengaluru-based Assetz Property Group, backed by the National Investment and Infrastructure Fund (NIIF), JP Morgan, and Apollo Global Management, is also eyeing a public listing. Assetz Executive Director Sunil Pareek had earlier told Business Standard that the company was “evaluating IPO plans” but had not shared a timeline for the plans.

 

BPTP, Smartworld Developers and Wadhwa group did not respond to queries from Business Standard till the time of going to the press.

 

In the past, realty companies such as DLF, Macrotech Developers (Lodha), Oberoi Realty, Godrej Properties, Brigade Enterprises, Prestige Estates, Signature Global, Keystone Developers (Rustomjee), Arkade Developers, Sobha and Anant Raj took the IPO plunge to drive formalisation in the market. 

 

Robust housing sales growth after the pandemic has prompted leading developers to unleash relevant inventory across markets, experts said. This has also resulted in aggressive expansion of developers, triggering an IPO wave.

 

“We expect investor participation to grow manifold in the coming years. Since listed companies must follow strict regulatory and financial disclosures, the increase in real estate companies going public helps boost the sector’s overall credibility and also the process of formalisation,” said Anuj Puri, chairman, Anarock Group.

 

Vimal Nadar, national director & head of research at Colliers India, pointed out that strong economic growth prospects and business optimism were likely to add credence to the increasing number of real estate IPOs in the near to mid term.

 

In an earlier interaction with Business Standard, Aakash Ohri, joint managing director and chief business officer at DLF Home Developers, had said that the listing plans reflected the growing confidence in the fundamentals of the real estate sector. He had linked it to the Real Estate (Regulation & Development) Act, 2016. “Compared to the pre-Rera era, I think funding today is far more disciplined and structured, with a strong emphasis on governance and compliance.”