We are actively chasing a couple of deals which we expect should happen over the next three to six months. We would accordingly look at raising funds through debt and leverage our balance sheet, which could be around Rs 400-500 crore depending on the size of the deal, , chief financial officer Saumil Daru said. The company is currently developing about 10 million square feet and will start developing another 10 million in the next six months. This area is divided into 13 ongoing and 11 planned projects. The firm expects the entire development to be completed over the next five years. However, Daru refused to give any details on expected investment in the ongoing projects.
The firm said it was not expecting any price decline unless land prices move down. Vikas Oberoi, managing director, Oberoi Realty, said, We can reduce prices only if land prices go down. However, we see demand picking up at the moment. We are also witnessing action in the commercial space. Though most developers had stop developing commercial properties, now we see the demand matching the supply. Of the 20 million square feet being developed by the company, about 12 million is residential area, 4 million is commercial space while the rest is social, hospitality and other spaces.
Oberoi Realty made its stock market debut on Wednesday. The stock closed at Rs 280, up 7.75% versus its issue price of Rs 260 per share on the National Stock Exchange (NSE). The stock hit an intra-day high of Rs 299. The Oberoi Realty IPO was subscribed 12 times. There were four realty IPOs this year so far. DB Realty was oversubscribed 2.63 times, Prestige Estates was oversubscribed 2.26 times, Nitesh Estate 1.13 times and Vascon Engineers 1.16 times.