The Hiranandani Group does not have any plans for an Initial Public Offering in 2024, and may look at hitting the capital markets in 2025,
The Hiranandani Group does not have any plans for an Initial Public Offering in 2024, and may look at hitting the capital markets in 2025, a top company official said on Wednesday.
Niranjan Hiranandani, the founder and managing director of the Mumbai-based group, said internal accruals are sufficient to take care of business requirements at present and all projects being undertaken do not require any funding support.
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“I have no plans at present… (there is) no need for capital today. But let us see. I haven’t decided anything in that direction, but never (say) no. Not (in) 2024, may be 2025,” Hiranandani told news agency PTI.
A slew of its peers from the city, including Rustomjee and Lodha Group (Macrotech Developers), have listed over the last few years. The group announced an expansion into the consultancy services space on Wednesday, wherein it will offer a slew of services, including liasoning, design and marketing, which spread out over the entire lifespan of a realty project, to clients.
Hiranandani said the idea is to offer the services on an “la carte” basis, wherein the client can choose the kind of help the entity needs.
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The group will charge 12-20 per cent of the cost as its fees, depending on the complexity of work it does, he said.
The newly launched service christened ‘Eleva’ will work across new developments, brownfield expansions, slum rehabilitation and building redevelopment, Hiranandani said, adding that 85 per cent of the people working in the vertical will be its existing staff, while the rest will be junior-level staff who will be hired. He exuded confidence of breaking even in the new business in a year.
He said poor execution of projects in Mumbai is a real issue, and pointed out that over 500 projects are stuck due to some shortcoming or the other.
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Hiranandani said interest rate cut and a new version of Prime Minister’s Awas Yojana, which does away with the Rs 45 lakh ceiling for a property to classify as affordable, can help prop-up sagging sales of affordable housing.
Hiranandani said in his career spanning over four decades, he has never seen a decline in sales of low-cost housing. However, he added that mid-range, premium, and luxury segments have seen impressive growth in the recent past.
(With PTI inputs)
