Realty major Lodha Developers will exit the UK property market and is in advanced stage to sell two of its residential projects in central London for about Rs 4,200 crore, a top company official said on Wednesday. Exiting the UK property market, is part of the company's strategy to reduce debt and strengthen its balance sheet. Lodha Developers, which aims to launch IPO when market condition improves, is also looking to raise about Rs 700 crore by selling stake in a mid-income housing project in Mumbai to private equity players, taking the total fund raising to nearly Rs 5,000 crore.
Lodha Developers has got approval in July to hit the capital market with an initial public offer (IPO) of about Rs 5,500 crore. The share sale, if successful, would be the second biggest IPO in the real estate sector after DLF that raised close to Rs 9,200 crore in 2007. This would be the second attempt by Lodha Developers to launch a public issue and list its shares on the stock exchanges.Lodha Developers had posted a 32 per cent rise in its consolidated net profit at Rs 790 crore during the last fiscal from Rs 599 crore in the previous year. Total income rose by 22 per cent to Rs 9,700 crore in 2017-18 from Rs 7,957 crore in the previous year.
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