Lodha aims to turn company debt-free by FY2024
Real Estate

Lodha aims to turn company debt-free by FY2024

Real Estate major Macrotech Developers (Lodha Group) aims to turn into a zero debt company in the coming three years with its concentration on mid-income, affordable housing, and industrial and logistics business.

Managing Director and CEO Abhishek Lodha told the media that the demand for rising housing amid the surge of the second wave of Covid-19 is also expected to accelerate sales of established Grade-A developers with stable financials.

Lodha told the media that the company is working to become a zero-debt company or net cash positive company by the financial year 2024.

Macrotech Developers registered on stock exchanges recently following its Rs 2,500 crore public issue, a major part of which will be used to repay the debt of the company. Lodha Developers had around Rs 6,000 crore of debt maturities at the end of March at its India operations over the following 24 months.

The demand for housing will increase due to people's requirement for more space, easy global monetary policies and more surplus owing to reduced discretionary spending in the backdrop of the second wave of Covid-19.

The property market has started fusing with top developers with financial and execution capability bringing in the supply backed by the homebuyers.

The liquidity crisis prior to the pressure associated with the housing sector by Non-Banking Financial Company (NBFCs) with poor quality projects and developers unsold units had led to an oversupply problem between 2014 and 2020.

The current situation has improved owing to the rationalisation of liquidity aid to financially stable entities.

In the rapid changing business scenario Lodha Group has also observed an increment and good growth of market share in the most prominent market, the Mumbai Metropolitan Region (MMR), and is now extending further in the Pune property market.

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Also read: Lodha IPO: Macrotech Developers to launch Rs 2,500 cr IPO

Also read: Top 10 richest realtors: Lodha tops list fourth time

Real Estate major Macrotech Developers (Lodha Group) aims to turn into a zero debt company in the coming three years with its concentration on mid-income, affordable housing, and industrial and logistics business. Managing Director and CEO Abhishek Lodha told the media that the demand for rising housing amid the surge of the second wave of Covid-19 is also expected to accelerate sales of established Grade-A developers with stable financials. Lodha told the media that the company is working to become a zero-debt company or net cash positive company by the financial year 2024. Macrotech Developers registered on stock exchanges recently following its Rs 2,500 crore public issue, a major part of which will be used to repay the debt of the company. Lodha Developers had around Rs 6,000 crore of debt maturities at the end of March at its India operations over the following 24 months. The demand for housing will increase due to people's requirement for more space, easy global monetary policies and more surplus owing to reduced discretionary spending in the backdrop of the second wave of Covid-19. The property market has started fusing with top developers with financial and execution capability bringing in the supply backed by the homebuyers. The liquidity crisis prior to the pressure associated with the housing sector by Non-Banking Financial Company (NBFCs) with poor quality projects and developers unsold units had led to an oversupply problem between 2014 and 2020. The current situation has improved owing to the rationalisation of liquidity aid to financially stable entities. In the rapid changing business scenario Lodha Group has also observed an increment and good growth of market share in the most prominent market, the Mumbai Metropolitan Region (MMR), and is now extending further in the Pune property market. Image Source Also read: Lodha IPO: Macrotech Developers to launch Rs 2,500 cr IPO Also read: Top 10 richest realtors: Lodha tops list fourth time

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