Macrotech Developers Limited (Lodha) announced successful closure of its QIP. The INR ~3,300 crores (USD 400 million) institutional placement received overwhelming response from both existing and new as well as global and domestic investors. The book was oversubscribed by nearly 3 times within 5 hours of issue opening and witnessed traction from diversified set of investors with long-term outlook, including sovereign funds, pension funds, insurers etc.
This is the 4th equity raise by Lodha in last 36 months and means that Lodha has raised over INR 13,000* crores of capital, showing the exceptional support from high quality investors in brand Lodha, its strategy and team.
The entire book was allocated to marquee long only global investors. Existing shareholders of the company such as Capital Group, GQG, Nomura, ADIA, HDFC Life reaffirmed their faith in the company by enhancing their investment through this QIP. The Institutional placement also saw new marquee investors like Invesco Oppenheimer, Blackrock, Carmignac, Franklin Templeton, Norges, Lazard, APG, RWC etc. endorsing the growth potential of the housing industry and Lodha’s leadership position in the sector.
Abhishek Lodha, MD & CEO, Macrotech Developers Ltd. said, “We are delighted to successfully conclude our institutional placement. 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. I am thankful to all our existing and new shareholders for reposing their faith in the brand Lodha once again.
India’s housing industry is going to play the pivotal role in the country’s transition from a low-income economy to being a mid-income economy by the end of the decade. During this period, housing is going to be the key beneficiary as well as the driver of the economic growth thereby creating “once in a country’s lifetime opportunity” for the industry. We see all the structural factors are in place for significant growth in volumes and are in only fourth year of a multi-decade long housing cycle. With this capital raise, our balance sheet is exceptionally placed and will give us the opportunity to improve profitability, while we continue to deliver on our growth outlook.
