Stock Report

Lodha Group successfully raises INR 4,000 crore equity through QIP

Posted On : 2021-11-18 14:52:56( TIMEZONE : IST )

Lodha Group successfully raises INR 4,000 crore equity through QIP

Macrotech Developers Limited (Lodha) today announced closure of largest ever QIP by a Real Estate Developer in India. The INR 4,000 crores institutional placement received overwhelming response from both existing and new as well as global and domestic investors. The book was oversubscribed by more than 3 times within 5 hours of issue opening and witnessed traction from diversified set of investors such as, sovereign fund, pension fund, mutual funds, insurers etc.

More than 90% of the book was allocated to marquee long only global investors. Existing shareholders of the company such as Capital Group, Ivanhoe Cambridge (CDPQ arm), Wellington, Nomura, Manulife, Nippon, Max Life reaffirmed their faith in the company by enhancing their investment through this QIP. The Institutional placement also saw new marquee investors like GIC, Oppenheimer, Universities Superannuation Scheme (USS), Amundi, Tata Mutual Fund etc. endorsing the growth potential of the housing industry and Lodha's leadership position therein.

Using the proceeds, Lodha intends to grow in under-represented micro markets of MMR and Pune in a capital efficient manner. The company is also exploring plans to enter into the Bangalore market to cater to the needs of even better quality development in a city which is seeing significant creation of technology jobs and wealth creation.

Company plans to nearly double its pre-sales to INR 14,000 crores by FY24 and further grow to INR 20,000 crores by FY26.

Mr. Abhishek Lodha, Managing Director, Macrotech Developers Ltd. said, "We are delighted to conclude our institutional placement, coming after just six months of the IPO. The significant demand from marquee investors enabled us to launch and close the QIP within hours of opening the book - a tremendous feat for the Indian housing industry. We see that all the structural factors are in place for significant growth in volumes in housing, especially in the middle income and affordable segments, which is a focus area for us. Our company aims to provide the world's finest developments to every income segment in India. With this fund raise, we are well on course of achieving dual target of deleveraging and capital light expansion through JDA model. Our debt to equity now stands at 0.75x. The Lodha brand is seen as delivering the best development quality and services for customers and the best NPV for land owners. We are seeing a very robust pipeline of JDA deals and plan to invest nearly INR 3,000 crores over the course of next 6 quarters through these JDAs and add about INR 40,000 crores worth of GDV to our portfolio."

Shares of Macrotech Developers Limited was last trading in BSE at Rs. 1430.75 as compared to the previous close of Rs. 1415.60. The total number of shares traded during the day was 21933 in over 2085 trades.

The stock hit an intraday high of Rs. 1461.75 and intraday low of 1394.05. The net turnover during the day was Rs. 31277661.00.

Source : Equity Bulls


MacrotechDevelopersLimited INE670K01029 LODHA RealEstate FundRaising QIP