Lodha Developers or Macrotech Developers is all set to raise around Rs 2,500 crore via an initial public offering (IPO) in the coming months. The company has filed the draft red herring prospectus (DHRP) or IPO documents with the market regulator Securities and Exchange Board of India (SEBI) on Tuesday, February 16. The objective of the IPO is to use the proceeds for debt reduction, land acquisition and new projects. However, this will be the third attempt by the Mumbai-based real estate player to raise money through an IPO.
Earlier in September 2009, it had tried for public listing with an aim to raise Rs 2,800 crore followed by another attempt in 2018. Both the times it failed to do so as in 2009, there was a global recession while in 2018, it retreated owing to unfavourable conditions in the real estate sector.
India’s largest residential real estate developer noticed the recent spike in housing demand, sales conversion and improved investors sentiment and decided to hit the market with its fundraising plan. JP Morgan, Axis Capital and Kotak Investment Banking have been roped in by the company as the lead bankers to the issue.
Lodha reported over Rs 2,500 crore of bookings in the third quarter of the financial year 2020-21 (FY21). It also witnesses an increase in demand in the premium and luxury residential segment during the same period with bookings of Rs 1,000 crore. Booking worth Rs 1,500 crore was seen in the middle-income and affordable segments. The company also said that its revenue stood at Rs 12,440 crore in the financial year 2019-20 compared to Rs 11,910 crore a year ago.
Founded in the year 1995, Lodha Developers is known for its ultra-luxury projects including the Trump Towers in Mumbai and 1 Grosvenor Square in London. The company had 38 projects in India and 19 planned projects, as of March 2020.Lodha v