Lodha Developers Sells Rs 42-Bn Real Estate In H1 Eyes Rs 90-Bn FY19 Sales

Lodha Developers Sells Rs 42-Bn Real Estate In H1 Eyes Rs 90-Bn FY19 Sales

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. Lodha Developers has emerged as the biggest player in Mumbai Metropolitan Region (MMR) with 18 percent market share in sales, its MD Abhishek Lodha said, citing industry data.

Lodha Developers Sells Rs 42-Bn Real Estate In H1 Eyes Rs 90-Bn FY19 Sales
Lodha Developers Sells Rs 42-Bn Real Estate In H1 Eyes Rs 90-Bn FY19 Sales

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 the 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 percent growth in sales and 14-15 percent growth in the collection over last year,” Lodha said. The company has a major presence in MMR and Pune, besides London where it is developing two prime properties. Quoting data compiled by a research agency from the Maharashtra real estate regulator’s website, Lodha highlighted that the company had the highest 18 percent 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. Lodha’s share sale, if successful, would be the second biggest IPO in the real estate sector after DLF that raised close to Rs 92 billion in 2007. 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.

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