Lodha Developers Limited IPO

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(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

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

Objects of the Lodha Developers Limited IPO:

Objective of Lodha Developers Limited IPO The Net Proceeds from the IPO will be utilized in the following manner: 1. Reduction of the aggregate outstanding borrowings of our Company on a consolidated basis  2. Acquisition of land or land development rights

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:

Promoters of Lodha Developers Limited Company are: (i) 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. He is also member of the national executive of the Bharatiya Janata Party. He provides strategic guidance to the Company's business activities. Other ventures and companies in which he is a director includes Lodha Foundation. (ii) Abhishek Mangal Prabhat Lodha, aged 38 years, is the Managing Director and Chief Executive Officer of the Company. He holds a master’s degree in science (industrial and systems engineering (supply chain & logistics)) from Georgia Institute of Technology, Atlanta, United States. He has 16 years of experience in strategy, design, project management, construction, corporate planning, legal and brand communication. Prior to joining our Company, he was working as a business analyst with McKinsey & Company, Atlanta, United States.

Company Business:

(i) The Company develops Real estate across the residential and commercial sectors in the Mumbai Metropolitan Region (the “MMR”), Pune and London. (ii) In Residential Portfolio, the price of Flat they sell is in the range of 35 Lacs to 59 Cr. (iii) In the commercial portfolio, they develop office and retail projects as income generating assets on lease model and sale model, with an increasing focus on the former. (iv) The company has a good track record of completing projects from acquisition to launch to completion thereby improving Return on investment.

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%
Note: ROE , D/E, P/E and OPM are calculated on the basis of FY20 results.

Recommendation on Lodha Developers Limited IPO:

Lodha Developers Limited IPO Rating by InvestorZone team: 3/10 1. Lodha Developers 94% income comes from residential flats selling. And, rest comes from commercial selling. So, concentration risk is there in the company. 2. D/E of 3.86x is very high as compared to its peers. 3. The impact of Covid-19 is very high on Lodha Developers as compared to listed peers. 4. The current ratio of 1 is dangerous, if they can't able to sell inventory then they will be in trouble.

Registrar of Lodha Developers Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Lodha Developers Limited Lodha Excelus, L 2, N M Joshi Marg, Mahalaxmi, Mumbai 400 011 Phone No. +91 22 2302 4400 Fax No. +91 22 2302 4550 E-mail: investorrelations@lodhagroup.com Website: www.lodhagroup.com

Discussion on Lodha Developers Limited IPO:


    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

    Apr 8, 2021 11:49

    QIB = 0.58x

    HNI = 0.12x

    Retail= 0.19x

    Employee = 0.05x

    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.

    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.

    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.

    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..


    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.

      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.

    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

      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.

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