Sunday, November 18, 2007

Lodha Developers plan Rs 8,000cr IPO

Lodha Developers, a Mumbai-based realty firm, plans to raise between Rs 6,000-Rs 8,000 crore through a public issue within the next 12-months and off-load 10-15% stake in the process.
"Lodha Developers plans to tap the capital market to raise resources to fuel its future expansion. A sum of anywhere between Rs 6,000-Rs 8,000-crore is planned to be raised by end-2008," a source closely connected with the development said.
The realty major, which has an ambitious and massive expansion plan of around Rs 10,000 crore, will use the proceeds of the IPO to fuel this expansion, the source said.
The IPO plans are expected to be fine-tuned over the next 3-4 months. "The promoters are expected to off-load around 10-15% of their stake," the source said.
The Mangal Prabhat Lodha-spearheaded group plans to use the IPO proceeds to fund expansion, which include residential and commercial projects in Tier I and II cities. This includes up-market residential projects of around Rs 2,000 crore at Walkeshwar and Prabhadevi in the metropolis.
Lodha group had recently acquired a 12.9-acre plot in Eden Square, Hyderabad, for Rs 255.42 crore, to develop a high-end commercial complex in about three million square feet area.


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