Jain Housing to prune debt

Construction sector may bounce back soon, says joint MD

January 02, 2021 11:09 pm | Updated 11:09 pm IST - Chennai

Kolkata, India - May 15, 2016: Construction workers and Engineers working for the construction of a high rise building in Kolkata with the famous Howrah Bridge in the background

Kolkata, India - May 15, 2016: Construction workers and Engineers working for the construction of a high rise building in Kolkata with the famous Howrah Bridge in the background

Chennai-based Jain Housing and Constructions Ltd. will reduce its debt to the minimum in the next two years and enter tier-II cities, said its joint managing director Sreyansh Mehta.

“Currently, at the group level, we have a debt of ₹470 crore to ₹500 crore and we would like to reduce it to as much as possible in the next two years,” he said in an interview. Towards this, the company had raised ₹175 crore from two international financial institutions viz. Nippon Life India Asset Management Ltd. of Japan and Apollo Global Management of the U.S.

“This shows the confidence, the investors have in us, even during the difficult times,” he said.

Jain Housing, which has been in the business of building residential apartments and complexes in the Southern States for the last 33 years, has completed 185 projects and has about 20 projects in pipeline.

Stating the estimated value of these projects would be about ₹4,000 crore, Mr. Mehta said they might go in for an initial public offering (IPO) when the estimated value of the projects cross ₹5,000 crore and at the right time, too.

“It would take at least three to four years, for us to reach this milestone.”

About the impact of COVID-19 on realty, he said some of the projects came to a halt following the lockdown, but they made it up, soon after.

Rise in cost

“There was a slight increase in construction cost, but we did not pass it on,” he added.

“Pandemic was a setback for everyone. But, we are hopeful and optimistic that the construction sector will bounce back soon,” he said.

“To bring back home buyers, we are offering incentives and attractive payment options,” he said.

The company is also gearing up to enter tier-II cities of the Southern States. Presently, it has ongoing projects in Chennai, Bengaluru, Hyderabad, Coimbatore, Kochi and Tiruppur.

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