Lodha Developers , a prominent real estate company, has successfully raised more than Rs 350 crore through the issuance of non-convertible debentures (NCDs). This strategic financial move demonstrates the company's ability to secure significant funding in the current market environment.

NCD Details

The company issued 35,000 NCDs with the following key features:

Flexible Interest Rate Structure

The NCDs feature a dynamic interest rate structure, with the initial coupon rate set at 3-month MIBOR plus a 2.09% spread. This translates to an attractive 8.19% per annum at current rates. The quarterly reset mechanism allows the interest rate to adjust to market conditions, potentially benefiting both the company and investors.

Investor-Friendly Payment Terms

While the coupon rate resets quarterly, payments to investors will be made on an annual basis, commencing from July 21, 2026. This structure provides a balance between frequent rate adjustments and convenient payment schedules for investors.

Gradual Redemption Plan

Lodha Developers has structured a phased redemption plan for these NCDs. The redemption will occur through eight quarterly installments, beginning on March 31, 2026. This gradual approach to repayment may help the company manage its cash flows effectively while providing investors with a clear exit timeline.

Listing and Accessibility

The NCDs will be listed on the Wholesale Debt Market segment of the Bombay Stock Exchange (BSE), enhancing their liquidity and tradability for institutional investors.

Conclusion

This successful NCD issuance by Lodha Developers highlights the company's strong market position and ability to attract investor interest. The structured approach to interest rates, payments, and redemption demonstrates a thoughtful strategy to balance the company's financial needs with investor expectations in the current economic landscape.

Lodha Developers , a prominent player in the Indian real estate market, has unveiled an ambitious plan to significantly boost its annual rental income over the next few years. The company aims to increase its rental income to Rs 1,500.00 crore by the fiscal year 2031 (FY31), marking a substantial six-fold jump from its current levels.

Strategic Expansion of Commercial Portfolio

The real estate giant is set to achieve this target through a strategic expansion of its commercial real estate portfolio. Lodha's plans encompass a diverse range of properties, including:

• Office complexes
• Retail projects
• Industrial warehousing parks

This diversification strategy is expected to drive the company's rental income growth and strengthen its position in the commercial real estate sector.

Current Commercial Footprint

Lodha Developers' existing commercial portfolio stands at an impressive 8.40 million square feet. Of this, the company has already successfully leased out 3.00 million square feet, demonstrating strong demand for its commercial spaces.

Financial Implications

The targeted increase in rental income is not just about top-line growth. Lodha Developers has a strategic financial objective behind this ambitious plan:

• The projected Rs 1,500.00 crore annual rental income is expected to cover nearly all of the company's interest and salary costs.
• This move could potentially lead to significant improvements in the company's financial stability and profitability.

Long-term Vision

By setting this ambitious target for FY31, Lodha Developers is clearly signaling its long-term commitment to the commercial real estate sector. The company's focus on building a strong rental income stream alongside its traditional development business suggests a balanced approach to real estate market opportunities.

As Lodha Developers works towards its FY31 goal, investors and industry observers will be keenly watching the company's progress in expanding its commercial portfolio and increasing its rental income. The success of this strategy could have significant implications for the company's financial performance and market position in the coming years.