Macrotech Developers below QIP price after 7% fall today; down 25% in 1 yr

Macrotech Developers' promoters have raised Rs 3,547 crore by selling shares around 7.2% of the company's equity share capital to institutional investors at the offer price of Rs 1,026 per share

Shares of realty firm Macrotech Developers dipped 7 per cent to Rs 1,005.50 on the BSE in Tuesday’s firm market. This was below its qualified institutional placement (QIP) price of Rs 1,026 per share.

Macrotech Developers, which sells its properties under the Lodha brand, 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 it recently made an entry into the Bengaluru market with a housing project.

Last week, the company had launched a QIP of equity shares. The issue was priced at Rs 1,026 against the floor price of Rs 1,022.75. The QIP consisted of an offer for sale (OFS) of shares by promoter group entities.

On Monday, December 12, the board of directors of Macrotech Developers approved the transfer of 34.57 million equity shares held by certain members of the promoters and promoter group of the company, to eligible qualified institutional buyers (QIBs).

The company's promoters raised Rs 3,547 crore by selling around 7.2 per cent of the company's equity through the QIP to institutional investors including UBS, ADIA, NinetyOne (formerly Investec), Nomura, William Blair, MSIM, Amundi and Nippon MF. 

This has been done to bring down the promoters' stake in the company to 75 per cent and meet the minimum public shareholding norm of 25 per cent.

"Pursuant to the QIP, the company and promoters have now raised approximately Rs 10,000 crore of equity in the last 20 months from some of the world’s most renowned investors, endorsing our optimism in India’s housing sector and confidence in Lodha’s high-quality management as well as its operational excellence", Macrotech Developers said in an exchange filing.

The 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 company said.

At 03:02 pm; the stock was trading 5.5 per cent lower at Rs 1,024.50, as compared to a 0.65 per cent rise in the S&P BSE Sensex.

In the past one year, it has underperformed the market by falling 25 per cent as against a 7 per cent rise in the benchmark index. The stock hit a 52-week low of Rs 814.85 on May 26, 2022 and a 52-week high of Rs 1,426 on December 13, 2021.