Hiranandani Group Rules Out IPO in 2024

Mumbai, Nov 29 (PTI) 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 city-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.

"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 PTI, replying to a specific query on the company's IPO plans.

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 "à la carte" basis, wherein the client can choose the kind of help the entity needs.

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.

The group will be selective in the project it chooses to work with, Hiranandani said, adding that it will not work with large-scale projects like the Adani Group's Dharavi project and restrict itself to smaller projects.

He said Dharavi accounts for only 10 per cent of the slums in the city, while the 90 per cent will continue to exist even if the Adani-led projects fructify.

It is possible to do away with all the slum structures in the city in 5-6 years, Hiranandani said, adding that he is preparing a plan on the same, which will be submitted to the PM under the aegis of an industry lobby grouping.

Asked about his son Darshan virtually admitting to bribing lawmaker Mohua Moitra to ask Parliamentary questions, Hiranandani refused to comment.

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.