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Lodha stock at a 52-week high after QIP launch

The shares of Macrotech Developers Ltd – also known as the Lodha Group – rose 10% intraday trade on the NSE, rising to a new 52-week high of ₹1,443. This came on the heels of the realty major launching a Qualified Institutional Placement (QIP) issue to raise ₹4,000 crore. 

The Lodha Group will be issuing around 3.4 crore new shares through this issue. The floor price for the issue as per SEBI regulations is ₹1,184.70 per share.

As per the release, the developer may offer an additional 5% discount on the floor price. The management said that it plans to utilize the proceeds for multiple purposes, including repaying debt, land acquisitions and related capital expenditure purposes.

Analysts at Emkay Global Financial Services Ltd noted that the nature and quantum of QIP did not come as a surprise, given that promoter holding needs to be pared down to 75% from around 89% currently, within three years from listing. However, they feel that the timing of the capital raise is much sooner than anticipated as Macrotech in its Q2 presentation indicated a capital raise in the next 12 months.

Meanwhile, during the September quarter, the company has reported total pre-sales of nearly ₹3,450 crore, including 88% rise in bookings worth ₹2,003 crore in India. Given the robust sales, its collections grew 73% year on year to ₹1,912 crore. Further, the developer also witnessed a reduction in the cost of borrowing.

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