New Delhi, May 1 (PTI) Realty firm Lodha Developers sales bookings for its India business increased 37 per cent to nearly Rs 5,500 crore during April-December, 2017-18 despite subdued demand in the property market.
Lodha had last week revived its IPO plans after eight years by filing draft red herring prospectus (DRHP) with markets regulator SEBI. It plans to raise an estimated Rs 5,500 crore through an initial public offer (IPO), which includes sale of new shares as well as promoters selling shares via Offer For Sale (OFS) route.
According to the DRHP, the companys sales bookings stood at Rs 5,482.5 crore during the first nine months of 2017-18 financial year as against Rs 3,995.9 crore in the year-ago period.
In terms of volumes, sales rose to 5.1 million sq ft as against 3.7 million sq ft, during the period under review. It sold 4,668 units during April-December 2017-18 as against 3,381 units during the corresponding period of the previous year.
"We are the largest real estate developer in India by residential sales for the nine months ended December 31, 2017 and 2016-17.
"Our sales from India operations by value for April-December and for 2016-17 and 2015-16 were Rs 54,825 million, Rs 69,664 million, and Rs 65,364 million, respectively," the DRHP said.
"Our track record in execution and continued construction spend has been instrumental in our consistent sales and performance, despite challenging market conditions over the last three years," it added.
Besides India, Lodha Group had forayed into the London realty market in 2013 and acquired two prime sites in central London for an investment of about 400 million pounds.
"Our overseas projects consist of projects in London, including Lincoln Square on Carey Street and 1 Grosvenor Square in Mayfair. These projects have achieved financial closure with development finance facilities tied up to meet future construction expenses. As of December 31, 2017, we have sold 114 units and achieved total sales of GBP 277.65 million," the DRHP said.
Mumbai-based Lodha Developers, founded in 1995 by Mangal Prabhat Lodha, had completed projects with developable area of 50.49 million sq ft till December last year.
It has 37 ongoing projects - 35 in India and 2 in London- with developable area of 33.80 million sq ft, bulk of it in the Mumbai Metropolitan Region (MMR).
Lodha had filed its DRHP in September 2009 to raise about Rs 2,800 crore. It had received Sebis nod in January 2010, but later shelved its plan to launch the IPO due to bad market conditions post the global financial crisis.
This will be second largest IPO in the real estate sector after DLFs Rs 9,000-crore public issue in 2007.
According to the DRHP, Lodha will issue fresh shares worth up to Rs 3,750 crore. The promoters will sell up to 1.8 crore shares through the Offer For Sale (OFS) route.
Sources had earlier said the total proceeds are estimated at about Rs 5,500 crore through the fresh issue as well as OFS.
The company is also considering a pre-IPO placement of up to 95 lakh equity shares for cash consideration aggregating up to Rs 750 crore, the document said.
From the net proceeds of fresh issue of shares, Lodha would utilise Rs 3,300 crore to retire its debt. The company had an outstanding debt of nearly Rs 18,000 crore as of January-end this year.
The global coordinators of the IPO are Kotak Mahindra Capital, CLSA India, JM Financial and Morgan Stanley India. PTI MJH MJH ANU ANU