Ahead Of Mega IPO Launch, Lodha Beats DLF In Revenue Race
While property markets in India have yet to fully recover from the side-effects of several policy changes, real estate biggies are recording huge profits, revealing not all is bad in the sector. Recently, Mumbai-based Lodha Developers has left DLF behind in terms of revenues for the first nine months of the financial year 2017-18 (FY18).
The company earned revenues to the tune of Rs 6,600 crore, against DLF’s Rs 5,329 crore for first three quarters of FY18. In the previous year, Lodha clocked Rs 5,572 crore in revenue as compared to DLF’s Rs 5,962 crore.
It is worth mentioning here that DLF is the largest real estate player in terms of market capitalisation whereas Lodha Group is a premium segment developer with the biggest presence in Maharashtra and some overseas markets.
As of December 2017, Lodha had 37 ongoing projects, of which 35 projects were in India and two were in London, with the total developable area of 33.80 million square foot (sqft).
Lodha also had 22 planned projects in India with a developable area of 64.21 million sqft whereas DLF has 235-million-sqft land bank, with 11 million sqft of projects under construction. However, DLF has a debt of Rs 18,000 crore while Lodha has a debt of Rs 17,900 lakh crore as on January 31, 2018.
The mega IPO
In a bid to repay its debt, Lodha Group will be raising around Rs 5,500 crore through its initial public offering as the company has filed its document for public offering of securities with capital market regulator Securities and Exchange Board of India (Sebi). Lodha’s would be the second-biggest IPO in the real estate sector after DLF’s (the latter raised Rs 9,188 crore in 2007). The company also aims to raise about Rs 7,500 crore in a pre-IPO placement where the company will issue 9.5 million fresh shares. Also, the promoters will sell up to 18 million shares through an offer for sale.
The realtor's IPO move has got a thumb's up from rating agency Moody’s.
"This is credit positive for the company if the IPO goes ahead as planned because it will meaningfully pare debt and improve leverage,” Moody’s said in a note.
With inputs from Housing News