Delhi-based real estate developer Eldeco Infrastructure and Properties has filed the draft red herring prospectus with capital market regulator Sebi, eyeing a Rs 1,000-crore initial share sale to improve the net debt-to-equity ratio.
The company proposed to issue new shares worth Rs 800 crore, while promoters Pankaj Bajaj and Bandana Kohli propose to sell Rs 200 crore worth of shares via offer-for-sale route, as per the IPO papers filed on September 30. As a part of the fresh issue, Eldeco may consider raising funds up to Rs 160 crore before the filing of red herring prospectus during the pre-IPO round.
The company, with presence in North India, intends to utilise Rs 600 crore of fresh issue proceeds for repayment of outstanding borrowing of subsidiary Eldeco Infracon Realtors, and remaining for general corporate purposes. As of August 2025, the total outstanding borrowing of Eldeco Infracon Realtors was Rs 1,285.8 crore, while the company's net debt to total equity ratio was 4.05 times in FY25.
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"We intend to improve net gearing ratio by focusing on generating operational cashflows through new launches, sales and execution of development portfolio," Eldeco Infrastructure in its DRHP said.
After completion of 86 projects of more than 50 million square feet, the company as of March 2025 has 19 ongoing projects with a saleable area of 7.24 million square feet and 18 forthcoming projects of a saleable area of 7.37 million square feet, in 14 cities.
Eldeco Infrastructure posted a net loss of Rs 63.8 crore for the year ended March 2025 against a profit of Rs 10.1 crore a year ago due to an exceptional loss and weak operating numbers. Revenue from operations during the same period surged 188.7 percent to Rs 695 crore, up from Rs 240.7 crore. EBITDA (earnings before interest, tax, depreciation and amortisation (EBITDA) in FY25 fell by 17.15 percent to Rs 44.1 crore, and margin dropped sharply to 6.34 percent, down from 22.12 percent in the same period.
The book running lead managers handling the Eldeco Infrastructure IPO are IIFL Capital Services, and JM Financial.
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