The Mumbai-based Lodha Developers has chalked out definite plans to utilise Rs 2,790 crore mopped up through its initial public offer (IPO), expected by the end of this financial year.
“We would utilise Rs 600 crore towards construction activities in our ongoing projects and Rs 300 crore would go towards retiring high-cost debt,” Abhisheck Lodha, managing director Lodha Developers told Hindustan Times.
Lodha added that the company would spend close to Rs 800 crore towards development of infrastructure in the 4200 acre land owned by it.
“The remaining Rs 1,090 crore will be spent towards purchase of fresh land in an around Mumbai,” he said.
Lodha explained that the company would decide upon the extent to which it wants to dilute its stake depending upon the prevalent market conditions at the time of its initial public offer launch.
“We wish to raise around Rs 2700 crore, the extent of equity dilution will be decide later on,” he said.
The company plans to launch around five new residential projects during the next three months with a total area for development of 1.5 million square feet.
The company is in the process of executing 29.9 million square feet in 38 projects with a focus on residential projects.
Lodha ruled out venturing into other verticals like hospitality and retail.