Lodha to invest Rs 6,000 cr in existing projects

Mumbai-based realty firm Lodha Developers, which plans to hit the capital market with its IPO early next year, will invest Rs 6,000 crore (Rs 60 billion) in the next three years on construction of its existing projects.

"We are currently developing about 30 million sq ft of area, comprising 38 projects. The average cost of construction to develop the projects is Rs 2,000 a sq ft," Lodha Developers managing director Abhisheck Lodha told PTI.

At an average construction cost, the total investment to develop the existing projects works out to be Rs 6,000 crore.

The company's current land bank stands at 260 million sq ft, which is enough to keep it busy for the next 10-12 years.

About 80 per cent of the company's total business is housing and the rest office space, he said, adding that going forward it would continue to focus on these two verticals.

In late September, the company had filed the draft red herring prospectus (DRHP) with market regulator SEBI to launch its initial public offer (IPO). According to sources, the company plans to raise Rs 2,790 crore (Rs 27.90 billion) from the IPO by diluting up to 15 per cent from its post-issue paid up capital.

Asked when the company would launch IPO, Lodha said: "We are waiting for SEBI's approval and we plan to hit the market within 45 days after getting the nod".

On pre-IPO placement of equity shares to institutional investors, he said: "We have an enabling resolution to raise funds through pre-IPO placement. But currently, we are not looking at it".