Nearly half of Lodha’s unsold inventory in premium segments
The draft red herring prospectus (DRHP) filed by Lodha Developers said nearly 48% of the total unsold inventory of residential developments (by value) was in the premium and luxury segments.
The macrotech developer filed its DRHP with the Securities and Exchange Board of India (Sebi) to raise Rs 2,500 crore through the initial public offering (IPO).
The DRHP said almost 21% of unsold inventory of the firm, which mostly operates in the Mumbai Metropolitan Region (MMR), was priced between Rs 1 crore and Rs 3 crore. About 7% was priced between Rs 3 crore and Rs 5 crore, 22% priced between Rs 5 crore and Rs 8 crore, and 15% over Rs 8 crore.
As per Anarock Property Consultants, at the end of 2020, of the total 638,000 unsold units in top seven cities, total stock in the luxury segment (priced above Rs 1.5 crore) was 14% (industry figures).
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For the financial year (FY) 2021 and FY20, premium and luxury projects contributed Rs 1,327.8 crore and Rs 2,233.8 crore to sales, accounting for 42.22% and 42.2% of residential sales, respectively. The DRHP said 35% of unsold inventory was below Rs 1 crore as of December 2020.
As of December 2020, unsold inventory in its affordable and mid-income projects constituted 52% of the total unsold residential developments (by value).
For FY21 and FY20, its affordable and mid-income projects contributed Rs 1,817.2 crore and Rs 3,055.3 crore to sales, which accounted for 57.78% and 57.77% of residential sales, respectively.
According to Anarock, 35% of unsold stock in the top seven cities was in the affordable segment (less than Rs 40 lakh) and 31% in the mid-income segment, priced between Rs 40 lakh and Rs 80 lakh.
Image: Lodha Developers reported a net loss of over Rs 264 crore in the quarter ended December.