Out of this debt, which included interest accrued thereon, Rs 400 was repaid on April 29, while the balance of Rs. 1,196 crore was repaid on Wednesday.
“This repayment, combined with our IPO fund raise and continued organic free cash flow generation are helping the company to progress further in its deleveraging plans,” the developer said in a regulatory filing.
Lodha Group is targeting significant reduction in net debt to Rs 10,000 crore by end of current financial year and as of now, the developer is on track for this.
The company intends to continue to focus on its capital light growth strategy around affordable and mid-income housing and digital infrastructure including warehousing, data centres, industrial parks with a view to deliver continued deleveraging and simultaneous growth.
The promoters of the company have repaid the debt by raising funds through a long-term instrument with tenure of over 3 years with no repayment obligation prior to that.
The promoters have also informed the company that they will be in a position to deleverage themselves in line with the minimum public shareholding obligations of bringing their holding down to a maximum 75% over a period of three years from listing.
The aforesaid funding has led to an encumbrance, but not a pledge, on a sub-set of the promoter’s shares in the company.