LATEST NEWS
- 08:42 AM Bond market likely to remain rangebound: Dhawal Da...
- 08:41 AM Rupee likely to be negative on weak global cues: B...
- 08:36 AM Ganeshaspeaks: Market prediction for Nov 27
- 08:34 AM Stocks in news: Ranbaxy, Sunteck Realty, Hindalco,...
- 08:33 AM Nifty likely to witness range of 5085-4925: Bhambw...
- 08:31 AM F&O cues: Nifty Dec futures trade at 13-pt discoun...
- 08:28 AM Market cues: FIIs net buy $14.1 mn
- 08:25 AM Global mkts panic on Dubai's debt rescheduling
- 08:24 AM Support for Sensex at 16635-16542: Gaba
- 08:21 AM Nifty has support at 4880-4930: Gujral
Lodha Developers hopes to launch IPO in Dec
Published on Wed, Nov 11, 2009 at 14:21 | Updated at Wed, Nov 11, 2009 at 16:55 | Source : Reuters
Lodha Developers hopes to launch an initial public offering to raise up to Rs 30 billion (USD 640 million) in December, encouraged by a revival in demand for homes, a top company official said on Wednesday.
The Mumbai-based builder, which focuses on high-end residential apartments in and around India's financial capital, will use the proceeds for retiring debt, to fund fresh land acquisitions and for working capital for existing projects.
"We hope to get approval from the regulator by November-end. We can then launch by mid-December. Otherwise, we will launch by mid-January," Managing Director Abhisheck Lodha told Reuters.
"The size of the company now demands good quality capital for growth."
At least 16 Indian developers have filed papers for public offers in the past two months, looking to raise a total of about USd 6 billion, following a revival in demand for homes in markets such as Mumbai and New Delhi.
A more than doubling in the main stock since early March has encouraged share-sale plans of cash-strapped Indian real estate firms.
Developers expected to hit the market soon include Emaar MGF, a joint venture between Indian financier MGF and the UAE's Emaar Properties, Sahara Prime City, Oberoi Constructions and Godrej Properties, a unit of Godrej Industries.
Lodha Developers is currently developing 29 million sq ft of space across 38 projects, mostly in Mumbai, and holds debt of Rs 10 billion on its books, the managing director said.
"We are in a sweet spot now - we are growing well and have a strong brand value. We hope this will be a differentiating factor to attract the best quality investors," Lodha said.
The company, which counts the private equity arm of ICICI Bank and Housing Development Finance Corporation and Deutsche Bank as investors in its projects, will look to rope in anchor investors for its IPO.
Lodha reported net profit of 957 million rupees in 2008/09, up 77% from the previous year, while income from operations rose almost three-quarters to Rs 9.5 billion, according to its draft prospectus.
It had a net worth of Rs 2.66 billion, translating to Rs 12.21 per share with face value of Rs 5.
JPMorgan, Citigroup, CLSA, Credit Suisse, Nomura, Enam, Kotak, Global Trustcapital and SBI Capital Markets are the book running lead managers to the issue.
The Mumbai-based builder, which focuses on high-end residential apartments in and around India's financial capital, will use the proceeds for retiring debt, to fund fresh land acquisitions and for working capital for existing projects.
"We hope to get approval from the regulator by November-end. We can then launch by mid-December. Otherwise, we will launch by mid-January," Managing Director Abhisheck Lodha told Reuters.
"The size of the company now demands good quality capital for growth."
At least 16 Indian developers have filed papers for public offers in the past two months, looking to raise a total of about USd 6 billion, following a revival in demand for homes in markets such as Mumbai and New Delhi.
A more than doubling in the main stock since early March has encouraged share-sale plans of cash-strapped Indian real estate firms.
Developers expected to hit the market soon include Emaar MGF, a joint venture between Indian financier MGF and the UAE's Emaar Properties, Sahara Prime City, Oberoi Constructions and Godrej Properties, a unit of Godrej Industries.
Lodha Developers is currently developing 29 million sq ft of space across 38 projects, mostly in Mumbai, and holds debt of Rs 10 billion on its books, the managing director said.
"We are in a sweet spot now - we are growing well and have a strong brand value. We hope this will be a differentiating factor to attract the best quality investors," Lodha said.
The company, which counts the private equity arm of ICICI Bank and Housing Development Finance Corporation and Deutsche Bank as investors in its projects, will look to rope in anchor investors for its IPO.
Lodha reported net profit of 957 million rupees in 2008/09, up 77% from the previous year, while income from operations rose almost three-quarters to Rs 9.5 billion, according to its draft prospectus.
It had a net worth of Rs 2.66 billion, translating to Rs 12.21 per share with face value of Rs 5.
JPMorgan, Citigroup, CLSA, Credit Suisse, Nomura, Enam, Kotak, Global Trustcapital and SBI Capital Markets are the book running lead managers to the issue.
More news from IPO - Issues Open
Important Links Today:
Global Market Update 
Corporate Action Today Important Events in Business Today
Corporate Action Today Important Events in Business Today Business
Business News | Economy | Earnings | BSE NSE Notices
General News
Current Affairs | Politics | World News | Sports | Entertainment
Corporate Strategy
Management | Advertising | Marketing | Legal
Personal Finance
Tax | Insurance | Credit Cards | Loans | Property | Retirement | Investment Help | Financial Planning | Fixed Income
Markets
Local Market | Global Market | Market Cues | Analysis | Expert & FII outlook | Brokerage Recomendation
Stocks
Stocks in News | Expert Advice | ADRs & GDRs | IPO
Mutual Funds
News | Advice | MF Analysis | Fund Managers Views
Lifestyle
Travel | Wellness | Technology | Auto| Books
WHAT OTHERS LIKE
-
Most Read
-
Most Viewed
24 Hours
7 Days
1 Month
- 10 Companies that FIIs love
- 10 companies that MF managers love
- Sensex ends 344 pts down; mkts see highest turnover ever
- Indian mkt to reach new highs in 2010: Roubini firm
- BMW unveils new 5 Series sedan
- Nov series ends with a whimper, experts see a quiet Dec
- Offer for Areva T&D unit 'competitive', says Alstom
- Ranbaxy launches new drug in the US: PharmAsiaNews
- Ashwani Gujral's top five picks for today's trade
- November 27: Events to watch out for
NEWS FROM OUR PARTNERS
- Lanco Infra tying up funds for three power projects
Source: Business Line
- RIL units to get 20% of gas needs from D-6
Source: Business Line
- No need to ban cotton export, says Maran
Source: Business Line
- Karnataka hikes power tariff by 34.16 paise/unit
Source: Business Line
©Network 18, 2009. All Rights Reserved