The country’s largest property developer by sales is about to file its updated prospectus with the capital markets regulator, and the final nod is expected mid-next week.
“The DRHP was filed little over a month ago and the updated papers responding to the usual observations are being submitted. With the final nod likely next week, the issue will be concluded by April 10,” said one of the persons mentioned above.
Through the proposed IPO, the Mumbai-based developer is looking to raise Rs 2,500 crore in total including a Rs 500-crore pre-IPO placement, showed the DRHP filed with SEBI last month.
However, it could not be ascertained if the company is going ahead with its plan to raise funds through pre-IPO placement or the entire fund raising will be undertaken through IPO itself.
ET’s email query to the Lodha Group remained unanswered.
The company plans to public issue proceeds to repay debt and finance acquisition of land or development rights. Around Rs 1,500 crore of debt is set to be repaid in FY22, while Rs 375 crore will be utilised to acquire land or development rights in the next two years.
The developer, which began initially with luxury properties and has now branched out into affordable homes, has total outstanding consolidated debt of Rs 18,662 crore as of December.
The promoter group is looking to dilute 10% in the company through this public share sale.
This is the third time the developer is proposing to take the company public after its attempt in 2009 and 2018, and later deferred the issue in the backdrop of unfavorable market conditions.
Besides ongoing and planned projects, Lodha also has land reserves of around 3,803 acres for future development in the Mumbai Metropolitan Region (MMR), with the potential to develop around 322 million sq ft developable area.
For the nine months ended December, the developer has reported a total income of Rs 3,160 crore against Rs 9,357 crore a year ago. The company’s net loss for the period stood at Rs 264 crore against Rs 503 crore profit a year ago.
The recent spike in housing demand, sales conversion and improved investor sentiment prompted the developer to hit the market with its fundraising plan.
During the quarter ended December, Lodha reported over Rs 2,500 crore of bookings in both luxury and affordable housing projects. The group reported increased demand for its luxury and premium homes, clocking around Rs 1,000 crore of bookings, while its mid-income and affordable business witnessed Rs 1,500 crore of bookings during the period.
