Lodha Developers files DRHP for IPO, aims to raise Rs 53 billion

Mumbai based property developer Lodha has filed draft red herring prospectus for its IPO. The IPO aims to raise between Rs 50 billion to Rs 53.50 billion, sources said.

The issue comprises issue of fresh shares worth Rs 37.50 billion and an offer for sale (OFS) of 18 million shares by the promoters.

The issue will result in 14-15 per cent dilution and value the company at Rs 370 billion to Rs 380 billion, sources said,

It will be the second biggest IPO in real estate sector after Delhi based DLF raised Rs 91.88 billion in 2007. Analysts have said the Lodha IPO will test the market for real estate IPOs as there was no real estate IPO in the last many years.

The company also aims to raise about Rs 7.5 billion in a pre-IPO placement where the company will issue 9.5 million fresh shares, Lodha said in its DRHP.

The company is looking to use Rs 33 billion from the IPO for repaying its debt. The company had a debt of Rs 179.73 billion as of Januaury 31, 2018.

This is the second time Lodha is attempting to raise money through an IPO after shelving its IPO plans earlier. The company had filed its DRHP in September 2009 to raise about Rs 28 billion. It received Sebi's nod in January 2010, but later shelved its plan to launch the IPO due to bad market conditions post the global financial crisis.

Kotak Mahindra Capital, CLSA, JM Financial and Morgan Stanley are the bankers for the issue.

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