Eldeco Infrastructure & Properties Files ₹1,000 Crore DRHP for IPO; Fresh Issue ₹800 Crore, OFS ₹200 Crore

Mumbai, 6 October 2025: Real estate developer Eldeco Infrastructure & Properties Limited has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch a ₹1,000 crore Initial Public Offering (IPO). The public issue includes a fresh issue of ₹800 crore and an Offer for Sale (OFS) of ₹200 crore by promoters, with listing planned on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Price band, bidding period, and lot size are yet to be announced.

Incorporated in 2000, Eldeco Infrastructure & Properties Ltd has a strong presence across Delhi-NCR, Lucknow, Kanpur, Ludhiana, and Tier-II cities. It operates primarily in residential and mixed-use real estate, including group housing and plotted developments. As of March 31, 2025, the company has 19 ongoing projects totalling 7.24 million sq ft and 18 forthcoming projects with 7.37 million sq ft across 14 cities. Since inception, Eldeco has delivered over 86 projects spanning 50 million sq ft, establishing a legacy in North India’s real estate market.

Eldeco Infrastructure’s ₹1,000 Crore IPO Signals Strategic Capital Raising Amid FY25 Losses

The IPO combines a fresh issue of ₹800 crore for corporate purposes and an OFS of ₹200 crore by promoters Pankaj Bajaj and Bandana Kohli. The move follows the company’s FY25 consolidated performance, which reported a net loss of ₹637.63 million on revenues of ₹6,949.78 million. By raising funds through the fresh issue, Eldeco aims to repay borrowings, reduce leverage, and strengthen the balance sheet, while the OFS allows promoter shareholding adjustments.

Eldeco Infrastructure FY25 Financials Highlight High Leverage and Net Loss; Deleveraging Key Objective

Eldeco reported total borrowings of ₹17,852.49 million in FY25, while net worth stood at ₹3,821.21 million. Earnings per share (EPS) were negative at ₹(10.00), with a net asset value (NAV) per share of ₹58.83. Despite generating revenues of ₹6,949.78 million, high finance costs and project timing led to a loss after tax of ₹637.63 million, highlighting the need for deleveraging and capital restructuring, which the IPO proceeds are expected to support.

Eldeco Infrastructure Planned IPO Proceeds Use: ₹600 Crore for Debt Repayment and Balance for Corporate Purposes

Eldeco plans to utilise ₹600 crore from the fresh issue to repay or prepay borrowings, including secured Non-Convertible Debentures (NCDs) of its subsidiary Eldeco Infracon Realtors Ltd. The remaining funds are earmarked for general corporate purposes, enabling the company to reduce financial leverage and maintain operational flexibility. A pre-IPO placement of up to ₹160 crore may adjust the fresh issue size if undertaken.

Eldeco Infrastructure Promoters, Lead Managers, and Strengths Highlight Operational Stability

Promoters Pankaj Bajaj and Bandana Kohli held 51% and 48.99% pre-issue, respectively, and will partially offload shares through the OFS. Lead managers include IIFL Capital Services Ltd and JM Financial Ltd, with KFin Technologies Ltd acting as registrar. Eldeco’s key strengths include an established legacy of over two decades, diversified project portfolio across townships and plotted housing, a robust development pipeline of 37 active and forthcoming projects, and an integrated in-house execution model ensuring timely project delivery.

Eldeco Infrastructure Key Risks: High Borrowings, Regional Concentration, and Project Execution Remain Critical

The company’s high leverage of ₹17,852 million and net loss in FY25 underline financial vulnerability. Regional concentration in NCR and Uttar Pradesh exposes the company to local regulatory and demand risks. Managing multiple concurrent developments across 14 cities adds execution complexity, while ongoing litigations pose additional operational challenges. Effective utilisation of IPO proceeds will be essential in mitigating these risks.

Eldeco Infrastructure & Properties’ DRHP filing reflects a clear strategy to reduce debt and enhance financial stability while supporting ongoing project execution. The structured approach to capital raising and promoter share adjustment provides operational flexibility, enabling the company to maintain continuity in project delivery and strengthen its position in the North India real estate market.

REF: https://nsearchives.nseindia.com/corporate/Registration_30092025225614_EldecoInfraDRHP.pdf

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations