Macrotech Developers announces closure Rs 3,300cr QIP with overwhelming investor support

In a significant development for India’s real estate sector, Macrotech Developers Limited, popularly known as Lodha, announced the successful closure of its Qualified Institutional Placement (QIP), amounting to approximately INR 3,300 crores (around USD 400 million). This remarkable achievement highlights the company’s strong foothold in the market and underscores the burgeoning confidence among investors in the growth potential of India’s housing industry. The QIP saw an overwhelming response, being oversubscribed by nearly three times within just five hours of the issue opening, reflecting the high demand and confidence in Lodha’s strategic direction and leadership.

This institutional placement attracted a diverse and prestigious set of investors, including sovereign funds, pension funds, and insurers, all with a long-term outlook on the real estate sector. Notably, the entire book was allocated to marquee “long only” global investors, illustrating the international appeal and trust in Lodha’s brand and vision. Among the investors enhancing their stakes were existing shareholders such as Capital Group, GQG Partners, Nomura, Abu Dhabi Investment Authority (ADIA), and HDFC Life. The placement also welcomed new high-profile investors like Invesco Oppenheimer, Blackrock, Carmignac, Franklin Templeton, Norges Bank Investment Management, Lazard Asset Management, APG Asset Management, and RWC Partners, all endorsing Lodha’s leadership position and the housing industry’s growth potential.

Abhishek Lodha, Managing Director & CEO of Macrotech Developers Ltd., expressed his gratitude towards the investors for their continued faith in Lodha. He emphasized the pivotal role of India’s housing industry in the country’s transition to a mid-income economy by the end of the decade. With the structural factors in place for significant growth, Mr. Lodha highlighted this period as a “once in a country’s lifetime opportunity” for the industry, with Lodha well-positioned to benefit and drive economic growth thanks to this capital raise.

This QIP marks the fourth equity raise by Lodha in the last 36 months, totaling over INR 13,000 crores of capital raised, showcasing the exceptional support from high-quality investors. This financial infusion strengthens Lodha’s balance sheet, enabling it to enhance profitability while continuing to capitalize on the growth outlook of the housing sector.

The successful closure of Lodha’s QIP is a testament to the robust investor confidence in India’s real estate market and Lodha’s strategic positioning. This capital raise not only solidifies Lodha’s financial foundation but also signals a bullish outlook for the housing sector, pivotal for driving India’s economic growth towards a brighter future.