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/
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|
|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 Date:||Apr 16 2021|
Promoters And Management:
Financials of Lodha Developers Limited IPO:
|Cost of Projects||2,052||9,550||7,378||8,908|
|Employee Benefit Expenses||201||390||390||493|
|Profit before tax||-521||1,006||2,489||2,710|
|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|
|Prestige Estates Projects||19%||3%||27%||7.52%||1.73||30.72||0.00%|
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