Top office space developers like DLF Ltd, Indiabulls Real Estate Ltd (IBREL), Prestige Group have raised equity capital by selling stake in office projects, some of which will be used to reduce debt in their residential portfolio. India’s largest developer DLF Ltd, with around Rs27,000 crore of debt as of 31 December, plans to reduce debt by Rs9,000 crore in the current financial year. My endeavour is to see that (the residential debt) also isn’t there in the books,” chairman and managing director Irfan Razack said. As a result, most developers have to raise external funding to get the project started, leading to a rise in debt. Mumbai’s Lodha Group, which has around Rs16,500 crore of debt, plans to reduce it by more than Rs1,000 crore in 2018-19 after reducing the cost of debt by over 1%.

Source: Mint April 08, 2018 17:03 UTC