May 27, 2024

Online bewerbungsmappe

Business The Solution

Macrotech Developers raises Rs 4,000 cr via QIP for growth, debt reduction



Realty firm Macrotech Developers has raised Rs 4,000 crore through sale of shares to institutional investors and will use this fund for business growth and reduction of debt, a top company official said on Thursday.


The Mumbai-based company, erstwhile Lodha Developers, is one of the leading real estate firms in the country and market its properties under ‘Lodha’ brand.


In an interview with PTI, Macrotech Developers Managing Director and CEO Abhishek Lodha said: “We have raised Rs 4,000 crore through QIP (qualified institutional placement) process. The demand was for more than Rs 12,000 crore worth shares from domestic and global investors.”

The company has raised this amount in less than six months of its initial public offer (IPO) of Rs 2,500 crore, he said.


Through the QIP, the company issued and allotted around 3.4 crore shares at Rs 1,170 per share.


Lodha said many new foreign and domestic investors participated in the QIP including Singapore sovereign wealth fund GIC and Oppenheimer.


Asked about use of QIP proceeds, he said: “Rs 3,000 crore will be utilised for growth of the business while the remaining Rs 1,000 crore will be used for debt reduction.”








For growth, Lodha said the company would continue to focus on adding projects in Mumbai Metropolitan Region (MMR) and Pune, mainly through joint development agreements (JDAs) with landowners.


“We will continue with capital light strategy. We will not go for big land acquisition.”

Lodha remained confident of achieving the targets of Rs 9,000 crore sales bookings during this fiscal on strong housing demand and also reduction of debt to below Rs 10,000 crore at the end of March 2022 from Rs 12,500 crore as on September 30, 2021.


On Monday, market sources had said that Macrotech Developers has raised Rs 4,000 crore through QIP. The issue opened on Monday and shares got subscribed same day itself.


After the QIP issues, the promoters shareholding will come down to 82.5 per cent. The company has two and half years more to meet the requirement of minimum 25 per cent public shareholding.


In April this year, Macrotech Developers got listed on the stock exchanges by raising Rs 2,500 through IPO.


Recently, Macrotech Developers reported its consolidated net profit at Rs 223.36 crore for the quarter ended September. It had posted a net loss of Rs 362.58 crore in the year-ago period.


Total income more than doubled to Rs 2,201.66 crore in the second quarter of this fiscal year from Rs 988.18 crore in the corresponding period of the previous year.


On the operational front, the company sold properties worth Rs 3,000 crore during April-September on better demand, and looks to double its sales bookings in the second half to reach the Rs 9,000 crore target this fiscal year.


Its sales bookings stood at Rs 5,970 crore during the last fiscal year.


Macrotech Developers focuses only on MMR and Pune markets.


The company is also developing two projects in London, where it made a foray in 2013.


Lodha said the company plans to sell its fully complete and rented office building of around 4 lakh square feet area in Mumbai.


The deal should be closed during this fiscal only, he added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor