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Macrotech to use QIP proceeds for new projects, debt reduction

BENGALURU :

Macrotech Developers Ltd, which operated under the ‘Lodha’ brand, said its ₹4,000 crore qualified institutional placement (QIP) share sale earlier this week, witnessed traction from diversified investors including sovereign and pension funds, mutual funds, insurers and others.

More than 90% of the book was allocated to long-term global investors.

The institutional placement saw new investors such as GIC, Oppenheimer, Universities Superannuation Scheme (USS), Amundi, Tata Mutual Fund. Existing shareholders of the company such as Capital Group, Ivanhoe Cambridge, Wellington, Nomura, Manulife, Nippon, Max Life also enhanced their investment through the QIP.

Macrotech said it launched the QIP share sale on Monday and it was oversubscribed by more than three times within five hours of the issue opening.

The Mumbai-based developer plans to use the process to grow in Mumbai Metropolitan Region (MMR) and Pune in a capital-efficient manner. It is also exploring plans to enter into Bengaluru, which is seeing significant creation of technology jobs and wealth.

It will use ₹3,000 crore for new project agreements through a joint development route and the remaining ₹1,000 crore for debt reduction.

The company plans to nearly double its pre-sales to ₹14,000 crore by 2023-24 and further grow to ₹20,000 crore by 2025-26.

“We are delighted to conclude our institutional placement, after just six months of the IPO. The significant demand from marquee investors enabled us to launch and close the QIP within hours of opening the book – a tremendous feat for the Indian housing industry. We see that all the structural factors are in place for significant growth in volumes in housing, especially in the middle income and affordable segments, which is a focus area for us. With this fund-raise, we are well on course to achieve the dual target of deleveraging and capital light expansion through the JDA model,” said Abhishek Lodha, managing director, Macrotech Developers.

The company’s debt to equity now stands at 0.75x.

“We are seeing a very robust pipeline of JDA deals and plan to invest nearly ₹3,000 crore over the next six quarters through these JDAs and add about ₹40,000 crore worth of GDV to our portfolio,” Lodha added.

 

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