HDIL is set to reduce the debt burden by selling land in Mumbai and Hyderabad
The realty firm Housing Development and Infrastructure Ltd (HDIL) has announced that they will sell their stakes in the 100 acre land parcel which they own in Kukatpally in Hyderabad and some of their commercial projects in Mumbai in FY 15. The reasons stated behind the decision are as follows-
- Post the elections the market has revived in the last one month and the current market rates are between Rs 4-6 crore/acre in Kukatpally in Hyderabad.
- HDIL Vice-President (Finance & Investor Relations) Hari Prakash Pandey stated that they want to liquidate their assets and sell off their stakes in their joint venture projects where they have 40-45 % stake. HDIL plans to raise up to Rs 1,800 crore this fiscal and want partly repay their debt by around Rs 600-700 crore.
- They managed to reduce the consolidated debt burden from Rs 4,004 crore in FY13 to Rs 3,511 crore in FY14. Now they are all set to reduce it to less that Rs. 2000 crore. In the last fiscal they had sold a land parcel in Delhi too.
- In this fiscal they want to focus only on residential projects in the Mumbai Metropolitan Region.
- Every year they reduced the debt burden by 22% and as of today they have Rs 2441 crore of debt burden.
In the last fiscal for Rs 290 crore they had sold their 45 % stake in HDIL Leisure. They wanted to sell the 70 acre land in Kochi, however now are speculating the market and waiting for better prices after the new government will be sworn in on May 26, 2014.
Source- Financial Chronicle
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