Sumadhura Exploring IPO Option

We are exploring IPO option. We will take a call in the next three months. If everything goes well, we will go for IPO either in 2026 or 2027 - G Madhusudhan, CMD, Sumadhura Group, tells Bizz Buzz

Hyderabad: Sumadhura Infracon Private Limited, which executed nearly 50 real estate projects including several luxury residential ventures in Bengaluru and Hyderabad, is actively exploring the option of going public in the next two to three years. “We are exploring IPO option. We will take a call in the next three months. If everything goes well, we will go for an IPO either in 2026 or 2027,”G Madhusudhan, Chairman and Managing Director, Sumadhura Group, told Bizz Buzz.

Hailing from Nalgonda district in Telangana, Madhusudhan entered the real estate sector more than three decades ago after stints in insurance and housing loan segments. In 2002, he established Sumadhura Group with three other partners and eight employees. The group, which currently has five shareholders and more than 1000 employees, entered the Bengaluru market in 2005 following a slowdown in the Hyderabad market. At present, it has operations in both the cities with four ongoing projects in Hyderabad and 10 in Bengaluru. It recently launched Palais Royale, a luxury residential project, in Hyderabad. The group, which is into residential, commercial, warehousing and plotted development, achieved total sales of Rs1,500 crore and cumulative collections of Rs1,000 crore in the last financial year. In the current financial year, it is aiming at Rs2,500 crore from sales and Rs1,500 crore in collections.

“We have been growing at 20 per cent annually on average for the past 15-20 years. We will maintain this growth momentum in coming years also,” Madhusudhan said.

Asked whether it’s the right time for the group’s Initial Public Offer (IPO), he said: “For a right company, every time is the right time. Stock market conditions do play a role, but not always. We are seriously thinking about going public”.

Through the proposed IPO, the company might dilute just 10-15 per cent of its stake. “Our intention is not to raise funds as we have sufficient funds to execute our projects. But customers’ trust levels will go up if a company is listed. Any listed company will be under regulatory scrutiny and it will have to comply with regulatory norms. That will definitely improve confidence levels among customers, bankers, landowners and all other stakeholders,” he explained.

He also feels that the company’s visibility will also improve post the listing.

The Sumadhura CMD said his company didn’t raise any funds from private equity players so far.

“We are not interested in raising funds through such a route. That was the practice in the past too,” he said.

The realty firm mops up funds by borrowing from financial institutions for individual projects. “We mostly use construction finance from banks for executing our projects,” he said.