• Industry
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Ambuja Neotia Group to restructure businesses for external funding; IPO a long-term possibility

Ambuja Neotia Group is consolidating and restructuring entities within the group to create a structure capable of receiving institutional capital, chairman Harshavardhan Neotia said. The exercise is expected to take six-nine months, while the group continues to invest around ₹2,000 crore annually and plans three project launches in the current financial year.

The exercise, which includes mergers and consolidation of entities within the group wherever feasible, could take another six-nine months, following which the group may evaluate funding options depending on market conditions and investor appetite.

Neotia said an initial public offering could be considered eventually, but remains a longer-term possibility and there is no immediate IPO plan.

The group invests around ₹2,000 crore annually, he said, and is looking at launching three projects during the current financial year, with the projects aggregating roughly 3-4 million sq ft, although development and launches will be undertaken in phases.

Neotia was speaking on the sidelines of CREDAI NATCON 2026 held in Kolkata. Edited excerpts:

How has the real estate market performed during the first nine months of 2026?

Generally, it has been positive. Geopolitics has affected sentiment and the stock market has also been somewhat sluggish, but we haven't felt any serious problem.

There is some pressure because input costs are increasing and raising prices is becoming more challenging.

At the same time, I think demand is increasingly getting concentrated among established developers with a track record. So, in that sense, we have benefited.

There could perhaps be some moderation at the overall market level, but I don't think established developers have necessarily seen a decline.

You mentioned difficulty in increasing prices. How long can developers absorb higher input costs?

It is difficult to put a timeframe on it because pricing is ultimately market determined. Cost pressures are there, particularly because of higher petrol prices and their cascading impact on supply chains, but pricing is something we have to leave to how the market develops.

How many projects are you planning to launch?

We have about three projects that we intend to launch during the financial year. The projects together are approximately 3-4 million sq ft, although they will be developed and launched in phases, so the entire area will not come to the market at once.

The planned developments are primarily in Kolkata and Siliguri and comprise a mix of residential, retail and office projects.

How much does the group invest annually?

Broadly, we invest around ₹2,000 crore annually.

Are you looking at raising external capital?

Not immediately. We are first getting the organisation ready. Being a privately held group, our businesses were not necessarily structured in a manner suited to receiving institutional investment.

We are therefore undertaking restructuring and consolidation within the group. In the next six-nine months, we should largely have a structure that can enable investment.

After that, depending on market conditions, investor appetite and interest, we can evaluate the options. We haven't approached investors yet because we first want to get the structure ready.

Are you consolidating the group's SPVs?

Yes. We are consolidating entities wherever it is possible. There are some situations where complete consolidation may not be feasible, but wherever possible we are doing it.

Is this restructuring being undertaken in preparation for an IPO?

An IPO could eventually be considered, but that is still some distance away. There is no immediate IPO plan.

How will the proposed removal of the Urban Land Ceiling framework help real estate in West Bengal?

We keep talking about ease of doing business, but there are archaic provisions that were introduced at a particular point in time for particular reasons and have now outlived their purpose.

Developers have found ways to navigate these provisions, but they create unnecessary bureaucracy and delays. At times, developers need multiple companies to hold smaller parcels and then undertake joint ventures among those entities. This also creates taxation and structural complications.

Removing such provisions will simplify the process.