Eldeco Infra Files for Rs 1,000 Crore IPO to Boost Debt Ratio
Delhi-based real estate developer Eldeco Infrastructure and Properties has filed for a Rs 1,000 crore IPO to improve its net debt-to-equity ratio. The company plans to use the funds for debt repayment and general corporate purposes.
Real EstateIpoEldeco InfrastructureDebt RatioNorth IndiaReal EstateOct 03, 2025
The company proposed to issue new shares worth Rs 800 crore, while promoters Pankaj Bajaj and Bandana Kohli plan to sell Rs 200 crore worth of shares via the offer-for-sale route. According to the IPO papers filed on September 30, Eldeco may also consider raising up to Rs 160 crore in a pre-IPO round before the filing of the red herring prospectus.
Eldeco Infrastructure, with a significant presence in North India, intends to use Rs 600 crore of the fresh issue proceeds for repaying outstanding borrowings of its subsidiary, Eldeco Infracon Realtors. The remaining funds will be utilized for general corporate purposes. As of August 2025, the total outstanding borrowing of Eldeco Infracon Realtors stood at Rs 1,285.8 crore, and the company's net debt to total equity ratio was 4.05 times in FY25.
In its DRHP, Eldeco Infrastructure stated, 'We intend to improve net gearing ratio by focusing on generating operational cashflows through new launches, sales, and execution of our development portfolio.' The company has a rich history of completing 86 projects totaling over 50 million square feet. As of March 2025, Eldeco has 19 ongoing projects with a saleable area of 7.24 million square feet and 18 forthcoming projects with a saleable area of 7.37 million square feet, spread across 14 cities.
Despite the ambitious plans, Eldeco Infrastructure faced financial challenges in the year ended March 2025. The company posted a net loss of Rs 63.8 crore, a significant shift from the Rs 10.1 crore profit recorded in the previous year. This downturn was attributed to an exceptional loss and weak operating numbers. However, revenue from operations surged by 188.7 percent to Rs 695 crore, up from Rs 240.7 crore. EBITDA (earnings before interest, tax, depreciation, and amortization) in FY25 fell by 17.15 percent to Rs 44.1 crore, and the margin dropped sharply to 6.34 percent from 22.12 percent in the same period.
The book-running lead managers handling the Eldeco Infrastructure IPO are IIFL Capital Services and JM Financial. These financial institutions will play a crucial role in shepherding the company through the IPO process, ensuring compliance and strategic execution.
Eldeco Infrastructure's IPO filing is a significant step towards strengthening its financial position and expanding its operations. The company's focus on debt reduction and strategic project execution is expected to attract both institutional and retail investors. With a strong presence in North India and a robust development portfolio, Eldeco Infrastructure is poised to leverage the IPO to achieve its financial and operational goals.
Frequently Asked Questions
What is the primary objective of Eldeco Infrastructure's IPO?
The primary objective of Eldeco Infrastructure's IPO is to improve the company's net debt-to-equity ratio by using the funds raised for debt repayment and general corporate purposes.
How much is Eldeco Infrastructure planning to raise through the IPO?
Eldeco Infrastructure is planning to raise Rs 1,000 crore through the IPO, with Rs 800 crore from new share issuance and Rs 200 crore from the offer-for-sale route by promoters.
What are the proposed uses of the funds raised through the IPO?
The funds raised through the IPO will be used to repay outstanding borrowings of Eldeco Infracon Realtors and for general corporate purposes.
What is Eldeco Infrastructure's current net debt-to-equity ratio?
As of FY25, Eldeco Infrastructure's net debt-to-equity ratio was 4.05 times.
Who are the book-running lead managers for Eldeco Infrastructure's IPO?
The book-running lead managers for Eldeco Infrastructure's IPO are IIFL Capital Services and JM Financial.
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