Lodha Developers eyes private equity for projects, IPO on hold

Lodha Developers is in talks with several private equity funds to sell stake in a Mumbai project to build the world's tallest residential tower, its managing director said on Tuesday.        
 

Abhisheck Lodha said the developer would hold back its planned $600 million initial public offer until stock markets stabilise and is banking on stronger-than-expected sales to tide over immediate cash flow needs.                                           

"We have taken a decision that we will go to market only when there is certainty to the market environment and we can price in a manner that investors make money," Lodha told the Reuters Global Real Estate and Infrastructure Summit.                         

"We hope the situation will work out in the next 2-3 months."

Lodha, which focuses on high-end residential apartments in and around India's financial capital, sold about 7 million sq ft last fiscal, but expects sales to be 50% higher in the current fiscal year to March.