Lodha Developers Limited IPO
(i) They are the largest real estate developer in India, by residential Sales value for the financial years 2014 to 2020. (Source: Anarock Report). The core business is residential real estate developments with a focus on affordable and mid-income housing. Currently, they have residential projects in the MMR and Pune. In 2019, they forayed into the development of logistics and industrial parks and entered into a joint venture with ESR Mumbai 3 Pte. Limited (“ESR”), a subsidiary of ESR Cayman Limited, an Asia Pacific focused logistics real estate platform. (Source: Anarock Report). They also develop commercial real estate, including as part of mixed-use developments in and around our core residential projects.
(ii) Lodha Developers brands include “Lodha”, “CASA by Lodha” and “Crown – Lodha Quality Homes” in the affordable and mid-income housing projects, the “Lodha” and “Lodha Luxury” brands for the premium and luxury housing projects, and the “iThink”, “Lodha Excelus” and “Lodha Supremus” brands for the office spaces.
(iii) They have inhouse sales team which is supported by a distribution network of multiple channels across India as well as key non-resident Indian (“NRI”) markets, such as the Gulf Cooperation Council, United Kingdom, Singapore and the United States. Lodha developers believe that the understanding of the relevant real estate market, positive perception and trust in the brand, innovative design and marketing and branding techniques enable us to attract customers.
(iii) Ongoing Projects
The large ongoing portfolio of affordable and mid-income housing projects include Palava (Navi Mumbai, Dombivali Region), Upper Thane (Thane outskirts), Amara (Thane), Lodha Sterling (Thane), Lodha Luxuria (Thane), Crown Thane (Thane), BelAir (Jogeshwari), Lodha Belmondo (Pune), Lodha Splendora (Thane) and Casa Maxima (Mira Road).
(iv) Revenue Contribution
Lodha Group affordable and mid-income housing developments accounted for Sales of ₹ 1817 Crores and ₹ 3055 Crores during the nine months ended December 31, 2020 and the financial year 2020, and constituted 57.78% and 57.77% of the total residential Sales, respectively. And rest come from, premium and luxury housing projects include Lodha Park (Worli), Lodha World Towers (Lower Parel), Lodha Venezia (Parel) and New Cuffe Parade (Wadala). In addition, they have a few projects under the “Lodha Luxury” brand, which comprise small-scale, high-value developments such as Lodha Altamount (Altamount Road), Lodha Seamont (Walkeshwar) and Lodha Maison (Worli).
(v) Completed and On-going projects
As of December 31, 2020, they have 91 completed projects comprising approximately 77.22 million square feet of Developable Area, of which 59.13 million square feet is in affordable and mid-income housing, 12.15 million square feet is in premium and luxury housing, 5.21 million square feet is in office space and 0.74 million square feet is in retail space.
They also have 36 ongoing projects comprising approximately 28.78 million square feet of Developable Area, of which 23.57 million square feet is in affordable and mid-income housing, 2.80 million square feet is in premium and luxury housing, 2.38 million square feet is in office space and 0.04 million square feet is in retail space, and 18 planned projects comprising approximately 45.08 millionsquare feet of Developable Area, of which 35.48 million square feet is in affordable and mid-income housing, 2.04 million square feet is in premium and luxury housing, 7.13 million square feet is in office space and 0.43 million square feet is in retail space, as of December 31, 2020.
(vi) Company’s Strength
Over 3,700 direct associates
Over 1,600 engineers
Over 200+ senior management professionals
140+ designers and architects
Over 700 marketing and sales professionals
Over 300 customer care representatives
.
The core business is residential real estate developments with a focus on affordable and mid-income housing.
Mr. Mangal Prabhat Lodha, is the founder and chief mentor. He founded the business in 1980 after moving to Mumbai from Jodhpur and has single-handedly inspired the Company to its current position as India’s largest real estate developer by residential Sales for the nine months ended December 31, 2017 and Fiscal 2017. In addition to his business achievements, he has been Member of the Legislative Assembly from Malabar Hill in Mumbai for five consecutive terms.
The IPO is opening on 07.04.2021 and closing on 09.04.2021.
The Lodha IPO will list on 19.04.2021
The Lodha IPO allotment can be checked at https://linkintime.co.in/MIPO/
| QIB | 0.58x |
| HNI | 0.11x |
| Retail | 0.15x |
| Employees | 0.04x |
| QIB | 0.65x |
| HNI | 0.19x |
| Retail | 0.25x |
| Employees | 0.10x |
| QIB | 3.05x |
| HNI | 1.44x |
| Retail | 0.39x |
| Employees | 0.17x |
To be updated on the listing date.
Objects of the Lodha Developers Limited IPO:
Lodha Developers Limited IPO Details:
| Open Date: | Apr 07 2021 |
| Close Date: | Apr 09 2021 |
| Total Shares: | 5,08,23,045 |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | Book Built |
| Issue Size: | 2,470 Cr. |
| Lot Size: | 30 Shares |
| Issue Price: | ₹ 483-486 Per Equity Share |
| Listing At: | NSE,BSE |
| Listing Date: | Apr 16 2021 |
Promoters And Management:
Company Business:
Financials of Lodha Developers Limited IPO:
| Particulars (Cr) | 9MFY21 | Mar-20 | Mar-19 | Mar-18 |
| Sales | 2,915 | 12,443 | 11,907 | 13,527 |
| Cost of Projects | 2,052 | 9,550 | 7,378 | 8,908 |
| Employee Benefit Expenses | 201 | 390 | 390 | 493 |
| Other expenses | 98 | 582 | 972 | 836 |
| Operating Profit | 564 | 1,921 | 3,167 | 3,290 |
| OPM % | 19.35% | 15.44% | 26.60% | 24.32% |
| Other Income | 245 | 118 | 72 | 199 |
| Interest | 811 | 732 | 556 | 382 |
| Depreciation | 56 | 306 | 194 | 398 |
| Profit before tax | -521 | 1,006 | 2,489 | 2,710 |
| Net Profit | -264 | 745 | 1,644 | 1,789 |
| No. of shares | 39.58 | 39.58 | 39.58 | 39.58 |
| EPS in Rs | -6.83 | 18.46 | 41.33 | 45.10 |
Comparison With Peers:
| Name of the company | 5-year Revenue Growth | 5 year PAT Growth | OPM | ROE | D/E | P/E | 3 Years Return |
| Lodha Developers (3 Years) | -4% | -35% | 15% | 17.80% | 3.82 | 26.33 | |
| Brigade Enterprises | 15% | 9% | 25% | 5.74% | 1.84 | 41.78 | 17.52% |
| DLF Limited | -4% | -20% | 24% | -1.69% | 0.24 | -0.01 | 14.21% |
| Godrej Properties | 6% | 7% | -7% | 5.56% | 0.77 | 131.23 | 30.27% |
| Oberoi Realty | 19% | 17% | 53% | 7.98% | 0.18 | 30.54 | 4.82% |
| Prestige Estates Projects | 19% | 3% | 27% | 7.52% | 1.73 | 30.72 | 0.00% |
| Sobha | 9% | 3% | 30% | 11.60% | 1.29 | 15.02 | -6.27% |
| Sunteck Realty | 15% | 8% | 27% | 3.42% | 0.32 | 41.02 | -10.65% |
Recommendation on Lodha Developers Limited IPO:
Lead Manager of Lodha Developers Limited IPO:
- BOB Capital Markets Limited
- CLSA India Private Limited
- Edelweiss Capital Limited
- HDFC Bank Limited
- ICICI Securities Limited
- IIFL Holdings Limited
- JM Morgan Stanley Private Limited
- Kotak Mahindra Capital Company Limited
- Morgan Stanley India Company Private Limited
- UBS Securities India Private Limited
- Yes Securities (India) Limited
Registrar of Lodha Developers Limited IPO:
Company Address:
Discussion on Lodha Developers Limited IPO:
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Macrotech Developers Limited-IPO. will be Listing on Monday, 19-Apr-2021
BSE Code :- 543287
NSE Symbol :- LODHA
ISIN :- INE670K01029
Face Value :- 10/- Per Equity Share.
Issue Price :- 486/- Per Equity Share.
Min Allotment : 30 shares
*Listing At :- BSE, NSE* (‘B’ Group of Securities)
Hello sir
I have a doubt regarding ZOMATO IPO . If I own 1 share of INFOEDGE( NAUKRI) can I apply for the IPO under parent company sharwholder category
Now gmp 5/7
Apr 8, 2021 11:49
QIB = 0.58x
HNI = 0.12x
Retail= 0.19x
Employee = 0.05x
Avoid.
1. Lodha Group mainly construct projects in the MMR . MMR means Mumbai Metropolitan Region. Currently, out of 36 ongoing projects, 35 are being constructed in Mumbai. So, we can conclude that, they have presence in only one region.
2. During covid-19 last year, their sales which was 5500 Crores in first 9MFY20 has gone down drastically to 3300 Crores in 9MFY21. And due to this, they are in loss for first 9MFY21.
3. Now, again as cases of covid-19 rising in Mumbai and with lockdown is looking firm in few days, Lodha Developers will face lot of problems and losses will again rise.
Gmp 17/20
Lodhas are the best…Here is the proof
https://m.youtube.com/watch?v=rCrAhU6B6nc
Aaj aashakti h kya price band for lodha developers ki
Bad News for the Construction companies in the state where Solid Waste Managenent Policy 2016 was not implemented. Supreme court has banned all construction activity in Uttarakhand, MP and MH and many other states where policy has not been implemented. This is negative for Lodha.
Ye date CONFIRM h kya sir ji
Most probably..
Realty firm Lodha Developers Ltd is likely to reduce the size of its initial public offering (IPO) following lukewarm interest from investors. When they first went out on the road shows they were looking at a ₹ 33,000-35,000 crore valuation. Now, they are considering a valuation of ₹ 26,000-28,000 crore.
Buzz in the market that the valuations have become a problem for Lodha. What they are asking for and what the market is ready to give, there is a gap in that.
Last year the company sold close to an area of 1 million square feet and as on date, they have unsold units close to an area of 3 million square feet. So it will take atleast 3 years to sell out the existing units. However, as per management, the growth in Affordable housing is good and the company has around 50% portfolio of the same. With the govt. initiative of housing for all by 2022, the Lodha group may get a good advantage in this segment but with a condition that Modi Govt’s come back in power next year else this scheme may get derail.
See Exclusive Interview with Abhishek Lodha to get insight in Lodha Developers IPO just beforehand it hits the marke
https://youtu.be/m_M0zAVoedM
Q1 – 18-19
New Sales Profits
Oberoi 117%↑ 241%↑
DLF 445%↑ 55%↑
Shobha 22%↑ 50%↑
Prestige 65%↑ 9%↑
Suntek 42%↑ 69%↑
Mahindra Lifespaces 5%↑ 93%↑
Major turnaround for organised players in the sector. Both affordable and mid-income housing are doing well. At a good valuation, real estate may be a good opportunity to invest
Company sales are 8-10k in tough market. Post IPO debt-equity will be 1.6:1. Looking at the size 13-14k debt is not very high. MD has said that in 2 years the ratio will come down to 1:1.
My Three Mantra for an Investment in any company:
1. Positive Operational Cash Flow, so that company meets out their expansion requirements and day to day expense with the internal accruals and don’t have to dilute equity or raise money via debt.
2. The company should have less debt on books. D/E<2.
3. The Company should have high ROCE ( >20%).
I still remember how Dlf and other real estate companies like parsvnath Sobha developers ipo were launched with huge success and prove to destroy Investor wealth. Retailer usually lose heavy money if they remain invested in such companies with huge debt. Construction companies profit numbers are very volatile.only a few exceptions are there in private construction company which have given return .I would say avoid unless it price P/ e in single digit.
I agree. Real estate companies have been mostly wealth destroyers..
Update on lodha IPO LODHA DEVELOPER HIT BY AUGUEST END
This is good to take for short term …
LODHA IPO – Schedule *(Tentative)*
06th Aug – Price Band to be Announced
10th Aug – Anchor List
13th Aug – Offer Opens
16th Aug – Offer Closes
23th Aug – Finalisation of Basis of Allotment
24th Aug – Unblocking of ASBA
27th Aug – Credit to Demat Accounts
28rd Aug – Listing on NSE & BSE
Please Note:
15th / 17th & 22nd August are bank Holidays
Lodha Developers IPO:
Very high debt and infrastructure segment company. Totally avoid IPO, no need to do any analysis. Market never supports high debt companies.
Many analysts try to convince by some arguments like it is mainly in residential segment.
That is also not convincing me because of high debt and no boom in residential demand at present.
Heard 30 rs Gmp…but i think not everywhere start….may be start soon…..
As per DRHP of Lodha Developers, the company was considering a private placement of 95 lakh shares aggregating upto ₹750 crores. Which translates into a price of about ₹789 per share. The RHP will have more details about the private placement.
I think till today no GMP started for Lodha. Anyone heard about it?
No Mitesh bhai. Haven’t heard from any reliable sources. Will update as soon as we hear it..
They just fooling people…The flats they sell for crores as 5 star or 7 star..There walls are made of gypsum/card board walls and wet sand under our flooring which will increase the moisture and can ruin ur plane walls.
I request you to see your full flat before paying.
Please go through this https://www.lodhagroup.com/company/milestones-and-achievements to check how fairly company has done in last 13 years.
All the real estates are not dull and also it is no matter whether the IPO is large or not. Promoters of Lodha Developers are trust worthy and have already completed some prestigious and vast projects. Now, if the fundamentals are strong and price band leaves some scope for investors, this IPO shall be successful one.
DLF and other real estate companies are quoted at high PE multiples. Price band for Lodha DeveloperIPO is very important. otherwise it will get rejected from the market
Lodha Developers IPO (Tentative Schedule)
6 August 18 – Anchor List
7 August 18 – Offer Opens
9 August 18 – Offer Closes
14 August 18– Finalization of Basis of Allotment
16 August – Unblocking of ASBA
17 August 18– Credit to Demat Accounts
20 August 18– Listing on NSE & BSE
Lodha Developers IPO GMP is 35-40 is it True
Haven’t heard from any reliable sources yet…
Lodha – Strong connection with BJP, will this help the company?
Political connection is always helpful for any business to flourish especially in India.
About Lodha
There Dream Project
Lodha Trump Tower at Worli
I would skip this issue.
Simple reason high debt on books and real estate company.
We all know how the previous private companies real estate have performed in long run.
DLF, parsvnath,omaxe and many others have destroyed investor wealth.
Avoid for long term investor. Also, i think listing gain might be limited as well even with high subscription
In the commercial portfolio, they offer office space projects for IT campuses, high-end corporate offices and boutique office spaces, malls and other high street retail shopping complex.
The Company’s residential portfolio comprises of affordable housing and premium housing consisting of luxury, high-end and aspirational developments. The company has a strong track record in the affordable housing segment. Moreover, the Government’ initiative of Housing for all by 2022 will definitely help companies which are there in the affordable segment and lodha group is having a good presence there as they have a Sales of ₹2751 Cr which was 39.5% of sales from affordable housing segment in FY17.
The Promoters Mangal Prabhat Lodha, Manjula Mangal Prabhat Lodha, And Abhishek Mangal Prabhat Lodha As Trustees Of Mangal Prabhat Lodha Family Discretionary Trust (“Promoter Selling Shareholder”) Are Selling Close To 18000000 Equity Shares To The Public. Out of 18,000,000 Equity Shares, 450000 Equity Shares are reserved for Employee.
1. Lodha Developers expected to raise 5500 cr from the IPO. The Issue would be a mix of Fresh shares and OFS by promoters.
2. Lodha’s IPO would be the second biggest IPO in the real estate sector, after DLF that raised close to Rs 9200 Cr in 2007.
3. Lodha Developers will reduce the debt with the IPO proceed. Net debt on books is 18000 Cr which will be reduced by 4500 Cr after IPO.
4. The company has 37 ongoing projects, of which 35 are in Mumbai region and Pune in India and two in London.
It is a real state company. The sector is laggard. Huge debt on books. Let us see how they priced IPO.
Lodha Developers have around 17000 Cr debt on the books.