Realty developer Omaxe repaid Rs 425 crore in a year, to cut debt to Rs 800 crore

NEW DELHI: Realty developer Omaxe will reduce debt by 50% over an 18-month period ending in December this year by selling land and property.

The company, which has repaid about R 425 crore in a year, plans to cut its debt to Rs 800 crore by the end of 2020 from Rs 1,922 crore in second quarter of 2019, chairman Rohtash Goel told ET. The group has no major borrowing plans.

“For the past 18 months, we have been focusing on reducing debt and repaid almost Rs 425 crore and will repay about Rs 600 crore in the next nine months. Most of the money will come from the sale of inventories which are in various stages of construction,” said Goel.


Omaxe has a presence across 27 cities in eight states. It is looking to strengthen its presence in north India by monetising land holdings in south India.

“In the first nine months of 2018-19, our cash flow from operations was Rs 1,145.96 crore, which increased to Rs 1,561.94 crore in the first nine months of 2019-20. Similarly, the area sold and the value from sales have also increased. We have focused on the sale of existing inventories and right now are not going for fresh projects,” Goel added.

Omaxe currently holds about 900 acres of land across the country.

Omaxe has delivered integrated townships, group housing projects, shopping malls, office spaces and hotel projects. With approximately 119.5 million sq. ft. of delivered space in both real estate and construction contracting, the company is currently developing 21 projects – five group housing, nine townships and seven commercial malls/hotels.

The company is currently redeveloping a commercial project spread over 4.5 acres in New Delhi’s Chandni Chowk area.

The project will be largely funded by internal accruals and customer advances. The total development under this project is about 1 million sq. ft., of which a quarter will be for retailing and 12.5% for food and beverages.