Is it true that the Lodha Group is again planning to come out with an IPO in the Indian markets?

After a fairly long time, India’s largest real estate developer, Lodha Developers of Mumbai have revived their IPO plans. Incidentally, this is the third time that Lodha Group has come out with a grand plan to raise Rs.2,500 crore through an initial public offer or IPO, as per filings with SEBI. The company is owned by Mumbai based, Mangat Lodha.

The funds so raised via the IPO will be utilized for debt reduction as well as for land acquisition. Earlier, in the year 2010, Lodha Group had planned to raise Rs.2,800 crore through IPO but had to put off its plans. Then again in 2018 Lodha Developers tried to come out with an IPO worth Rs.5,500 crore but was forced to shelve it due to turbulent markets,

This time around, Lodha plans to come out with the IPO of a smaller amount and further details of the plan are awaited. Clearly, Lodha Group wants to make the best of the current scenario when the markets are at a peak, real estate is just about picking up and valuations are also quite attractive. Investor interest IPOs is also at a peak, so the time is ripe.

Out of the proposed IPO value of Rs.2,500 crore, the Lodha group plans to utilize Rs.1,500 crore to reduce its current debt burden and an amount of Rs.375 crore to acquire land and land rights. Lodha group is the largest real estate developer in India by revenues with annual collections exceeding Rs.9,000 crore. It has already forayed in the London realty market.