ADIA, GIC, CDPQ arm bet on Lodha group firm Macrotech as IPO opens
Macrotech Developers Ltd, formerly known as Lodha Developers Ltd, has raised Rs 741 crore ($100.8 million) from anchor investors ahead of its initial public offering that begins Wednesday.
The Lodha Group company allotted 15.25 million shares at Rs 486 apiece to a bunch of investors, according to a stock-exchange filing.
Ivanhoe Cambridge, the real estate arm of Canadian pension fund CDPQ, and Japan’s Nomura invested about Rs 116 crore each. Abu Dhabi Investment Authority, the Gulf emirate’s sovereign wealth fund, pitched in with almost Rs 58 crore while Singapore wealth fund GIC Pte Ltd put in Rs 16.5 crore.
Other foreign institutional investors who put in money include US-based firms Capital Group, Morgan Stanley and Citigroup, French firms Societe General and BNP Paribas and Australia’s Platinum Asia Fund.
This is the third attempt by Macrotech Developers to go public; it had previously tried to float an IPO in 2010 and 2018. The company is aiming to raise Rs 2,500 crore ($343 million) in fresh capital through this IPO.
The company aims to use Rs 1,500 crore of the net proceeds to reduce debt. It wants to spend Rs 375 crore to buy land or land development rights. It also will keep some money aside for general corporate purposes.
The IPO will result in a 10% stake dilution, valuing the company at Rs 25,000 crore.
A successful IPO will make Macrotech the first major real estate company to float an IPO in more than a decade.
DLF Ltd is India’s largest listed developer with a market capitalisation of Rs 77,898 crore. Oberoi Realty Ltd went public in October 2010 with a Rs 1,028 crore IPO. It now commands a market value of Rs 20,788.96 crore.
Godrej Properties Ltd went public in 2009 with a Rs 500-crore IPO. The company is valued at Rs 37,952 crore.
Mumbai-based Lodha is known for developing luxury residential properties. It is developing World One, the world’s tallest residential tower at 442 metres high. Its other offerings include the residential properties at the Trump Towers in Mumbai and Grosvenor Square in London.
The company has appointed Axis Capital, JP Morgan India, Kotak Mahindra Capital Co. as global co-ordinating lead managers to arrange the share sale.
ICICI Securities, Edelweiss Financial Services, IIFL Securities, JM Financial, Yes Securities, and SBI Capital Markets are also part of the merchant bankers’ syndicate.