Lodha (Macrotech Developers) | Stock Performance Analysis

Looking back over the past year, the company’s shares have yielded multibagger returns of 101.07%, in the same time frame BSE Realty has changed by 92.84%.

Stock Performance
Today, the broader market BSE Sensex is trading in the green, up by around 0.66%. The most focused sector currently is BSE Realty with all stocks in the sector trading positively leading to a sectoral rise of 5.94%. Macrotech Developers hit a fresh 52-week high today at Rs 1,090, while its 52-week low stands at Rs 355.50. In the last trading session, the stock closed at Rs 1,004.30. Today, it opened at Rs 1,010.15 and is currently trading at Rs 1,086, marking an increase of 8.14%. The company has crossed the 1 lakh crore market capitalisation mark and currently stands at approximately Rs 1,04,800 crore.

Over the past six months, the company’s shares have provided staggering returns of 53.79%. Looking back over the past year, the company’s shares have yielded multibagger returns of 101.07%. In the same time frame, BSE Realty has changed by 92.84%.

About the Acquisition
Macrotech Developers today reported to the exchanges that it has recently finalised the acquisition of Goel Ganga Ventures India Private Limited (GGVIPL), a real estate development firm established in July 2020. GGVIPL operates exclusively within India and specializes in real estate development and associated activities. Over the past three fiscal years, GGVIPL has reported nil turnovers. The acquisition is set to be completed by January 15, 2024. This acquisition marks a strategic expansion within the real estate domain for Macrotech Developers, aligning with their core business objectives.

About the company
Macrotech Developers Ltd is primarily engaged in the business of real estate development. It is among the largest real estate developers in India with a presence in MMR (Mumbai Metropolitan Region) and Pune markets. It also develops commercial real estate including as part of mixed-use developments in and around its core residential projects.

The company’s brands include Lodha, CASA by Lodha and Crown - Lodha Quality Homes for its affordable and mid-income housing projects the Lodha and Lodha Luxury brands for its premium and luxury housing projects and the iThink, Lodha Excelus and Lodha Supremus brands for its office spaces.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Strategic development: Macrotech Developers raise Rs 3,281 crore through QIP

Subtitle: Explore how Macrotech Developers raised Rs 3,281 crore through a QIP, detailing the investors involved and the strategic implications.

Category: Stocks

In a strategic move, Indian real estate giant Macrotech Developers Ltd recently raised Rs 3,281 crore through a Qualified Institutional Placement (QIP). The funds raised are intended for debt repayment, land acquisition, and other corporate purposes. Let’s delve into the details of this significant development.

Understanding the QIP Process

A Qualified Institutional Placement (QIP) is a way for listed companies to raise capital by issuing equity shares to institutional investors. This method helps companies raise funds quickly without going through the lengthy process of a public offering.

Key Details of Macrotech Developers’ QIP

The QIP opened on March 4, 2024, and closed on March 7, 2024. The company’s share allotment committee approved the allotment of 2,98,89,353 Equity Shares at an issue price of Rs 1,098 per share (including a premium of Rs 1,088 per share), aggregating to Rs 32,818.51 million. This has increased the company’s paid-up equity share capital to Rs 9,944.20 million, comprising 99,44,20,185 Equity Shares.

Investors in the QIP

Several prominent Qualified Institutional Buyers (QIBs) participated in Macrotech Developers’ QIP. The list includes:

New World Fund INC: Allotted 15,47,212 company shares, investing Rs 169.88 crore.

Stichting Depositary APG: Allotted 26,82,017 company shares, investing Rs 294.48 crore.

HDFC Life Insurance Company: Allotted 21,89,404 shares, investing Rs 240.39 crore.

Invesco Fund: Allotted 64,14,509 company shares, investing Rs 704.31 crore.

Nomura Ireland Funds: Allotted 21,41,518 company shares, investing Rs 235.14 crore.

GQG Partners Emerging Markets Equity Fund: Allotted 33,52,104 company shares, investing Rs 368.22 crore.

Significance of the QIP

The successful completion of the QIP reflects investor confidence in Macrotech Developers’ growth prospects. The funds raised will strengthen the company’s financial position, enabling it to pursue strategic initiatives and capitalise on growth opportunities in the real estate sector.

Conclusion

Macrotech Developers’ successful QIP is a testament to its strong market position and the trust it commands among institutional investors. The funds raised will bolster the company’s ability to navigate the evolving real estate landscape and drive long-term value for its stakeholders.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.