Published & Updated as on - 2010-02-18

Mumbai-based realty firm Lodha Developers today said it has received market regulator Sebi's approval for its Rs 2,790-crore initial public offer (IPO), which is expected to hit the capital market in the next 4-5 weeks.

"We have received the final approval from Sebi," Lodha Developers Managing Director Abhisheck Lodha told PTI.

The company had filed the draft red herring prospectus (DRHP) in late September last year.

Asked when the company plans to hit the market, Lodha said details would be finalised within the next 30 days in consultation with merchant bankers.

Market sources, however, said that Lodha Developers plans to launch its IPO in the next 4-5 weeks. The company plans to raise up to Rs 2,790 crore from the IPO by diluting up to 15 per cent from its post-issue paid up capital.

Out of the total proceeds from the issue, the company has earmarked over Rs 1,800 crore to meet construction cost of its ongoing and planned projects and Rs 300 crore to repay debt, which stands at about Rs 1,000 crore.

Lodha has a land bank of 260 million sq ft. At present, the company is developing about 30 million sq ft, comprising 38 projects, with an investment of Rs 6,000 crore.

Out of the total 38 projects that the company is currently developing, 35 are located in Mumbai Metropolitan Region and one project each in Lonavala, Pune and Hyderabad.

About 80 per cent of the company's total business is housing and the rest office space.

Lodha Developers posted a net profit of Rs 95.6 crore over a turnover of about Rs 950 crore in the previous fiscal.

Source:Business Standard