Hiranandani Group delays IPO plans to 2025, citing ample internal resources

Hiranandani Group, led by Founder and Managing Director Niranjan Hiranandani, has disclosed that it has no intentions of initiating an Initial Public Offering (IPO) in 2024. According to the top executive, internal funds are currently sufficient to meet business requirements, and ongoing projects do not require additional financial support. Responding to queries about IPO plans, Hiranandani stated, "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, maybe 2025."

Hiranandani's tailored consultancy

In contrast to some industry peers like Rustomjee and Lodha Group, who have recently entered the stock market, the Hiranandani Group is exploring expansion into the consultancy services sector. The newly introduced service, named 'Eleva,' will provide a range of services, including liaison, design, and marketing, throughout the entire life cycle of real estate projects. Hiranandani explained that the services will be offered on an à la carte basis, allowing clients to choose the specific assistance they require. The group plans to charge fees ranging from 12-20 per cent of the project cost, depending on the complexity of the services provided.

'Hiranandani expressed confidence in achieving break-even in the consultancy services business within a year. The expansion into consultancy services is aimed at addressing challenges in project execution in Mumbai, where over 500 projects are reportedly stalled due to various issues. The group intends to be selective in choosing projects and will not engage in large-scale endeavours like the Adani Group's Dharavi project, focusing instead on smaller initiatives.

Regarding his son Darshan's alleged admission to bribing lawmaker Mohua Moitra to ask Parliamentary questions, Niranjan Hiranandani declined to comment. Hiranandani also emphasised the significance of an interest rate cut and a revised version of the Prime Minister's Awas Yojana, eliminating the Rs 45 lakh ceiling for affordable properties, to boost sales in the affordable housing sector. Despite noting a decline in sales in mid-range, premium, and luxury segments, Hiranandani highlighted that affordable housing has consistently shown growth throughout his four-decade-long career.

(With PTI Inputs)