Hero Realty’s game plan: Rs 7,000 crore sales, IPO in two years

With the Delhi-NCR real estate market coming back to life post-Covid-19, Hero Realty is aiming to grow its sales and, eventually, go for an initial public offering (IPO). The real estate arm of the Hero Group is also working on to expand its footprint in the commercial real estate space and launch separate brands for residential and commercial segments.

In an interaction with Business Today, CEO Dharmesh Shah says Hero Realty is eying Rs 5,000–7,000 crore sales and an IPO in next two years. “We have been leveraging our brands to acquire new products through an asset light strategy and our focus is on Gurgaon, Noida, Delhi, and Mohali. So, if you look at the next one or two years, will hear from us close to another 30 - 35 lakh sq. feet of launches. We have a launch planned in Gurgaon, under Hero Earth, and then there is one more tower which was pending, which is another 13 lakh sq ft.,” says Shah.

Additionally, it has 7 lakh sq. ft. in Mohali, 10 lakh sq. ft. in Ludhiana and 150 residential plots in Haridwar. “So, we have great pipeline for this year and our target for this year is close to Rs 1,400–1,500 crore. And then there are new projects. Today we have projects worth Rs 6,000 crore, including projects under JV, one or two projects in plotted development and majorly group housing,” he added.

The company that currently gets a majority of its sales from residential projects is also planning to ramp up its commercial business. To further streamline the business, Hero Realty is planning to segregate the business under four brands. It plans to create a brand Hero Earth that will be for the plotted development projects. Hero Homes will be placed as the premium affordable brand. While commercial business and luxury projects would be under two separate brands.

“Four big brands and turnover of Rs 5,000–7000 crore is our target. And hopefully we will get listed in next two years. So, a listed private real estate player with majority of business in NCR region offering premium branded quality products and the services,” says Shah.