Macrotech Developers' promoters raise Rs 3,547 cr via share sale to investors

As on September 2022, promoters had 82.20 per cent stake in the company and they needed to bring it down to 75 per cent in order to maintain the minimum 25 per cent public shareholding.

It has already met more than half of its Rs 11,500 crore sales guidance for the full 2022-23 financial year. (Photo credit: https://www.lodhagroup.in/home/)

Realty firm Macrotech Developers' promoters have raised Rs 3,547 crore by selling shares to institutional investors including ADIA for bringing down their stake in the company to 75 per cent and meet the minimum public shareholding norm of 25 per cent.

Mumbai-based Macrotech Developers sells its properties under the Lodha brand.

Last week, Macrotech Developers had launched a Qualified Institutional Placement (QIP) of equity shares. The issue closed on Monday.

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The QIP consisted of an offer-for-sale (OFS) of shares by promoter group entities -- Sambhavnath Trust, Sambhavnath Infrabuild and Farms Pvt Ltd, Hightown Constructions Pvt Ltd and Homecraft Developers and Farms Pvt Ltd.

The promoters have sold shares for the purpose of achieving minimum public shareholding.

"Promoters and members of the promoter group of Macrotech Developers have raised approximately Rs 3,547 crores by selling approximately 7.2 per cent of the equity share capital of the company through a Qualified Institutional Placement (QIP) by way of offer for sale," the company said in a regulatory filing on Monday.

The issue was priced at Rs 1,026 as against the floor price of Rs 1,022.75.

As on September 2022, promoters had 82.20 per cent stake in the company and they needed to bring it down to 75 per cent in order to maintain the minimum 25 per cent public shareholding.

On the successful QIP, Macrotech Developers MD and CEO Abhishek Lodha said: "We are pleased that marquee long-only investors such as Capital Group, UBS, ADIA, NinetyOne (formerly Investec), Nomura, USS, William Blair, MSIM, Amundi and Nippon MF have participated in the share sale, joining other globally renowned investors in our company such as GIC, Ivanhoe Cambridge, Wellington, Platinum, and HDFC MF."

"As promoters, we were keen to see that new high quality long only shareholders become partners in this round of fund raising too enabling company to achieve the stipulated minimum public free float of 25 per cent," he added.

Pursuant to the QIP, the company and promoters have now raised about Rs 10,000 crores of equity in the last 20 months.

"Promoters have informed that following this fund raise, their shareholding in the company will be made free of all encumbrances. Having achieved 25 per cent free float, the company in due course will be eligible for inclusion in various free float linked indices," the filing said.

Macrotech Developers is one of the leading real estate firms in the country.

It has a major presence in Mumbai Metropolitan Region (MMR) and Pune property markets, while recently making an entry into the Bengaluru market with one housing project.

During April-September period, the company has clocked record sales bookings of Rs 6,004 crore, as against Rs 2,960 crore in the corresponding period of the previous year.

It has already met more than half of its Rs 11,500 crore sales guidance for the full 2022-23 financial year.

Macrotech Developers has delivered more than 89 million square feet of real estate and is developing around 100 million square feet under its ongoing and planned portfolio.

The Lodha Group firm has about 4,400 acres of land beyond its ongoing and planned portfolio, which will be utilised in developing residential, commercial and industrial and logistics spaces.

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