GIC joins Lodha firm Macrotech’s cap table as CDPQ arm bets more

 GIC joins Lodha firm Macrotech’s cap table as CDPQ arm bets more

Singapore sovereign wealth fund GIC Pte Ltd has come in as an investor in Macrotech Developers Ltd while Ivanhoe Cambridge, an arm of Canadian pension fund CDPQ, doubled down on the Lodha Group’s flagship company.

Mumbai-listed Macrotech said Thursday it has raised Rs 4,000 crore ($540 million) from both new and returning institutional investors. The qualified institutional placement book was the largest ever by a real estate developer in India, Macrotech said, adding that it was oversubscribed more than three times within five hours of issue opening.

Sovereign funds, pension funds, mutual funds and insurers took part in the share sale. More than 90% of the book was allocated to long-only global investors.

Existing shareholders such as Capital Group, Ivanhoe, Wellington, Nomura, Manulife, Nippon and Max Life participated in the QIP issue. New investors who pitched in included GIC, Invesco Oppenheimer, Universities Superannuation Scheme, Amundi and Tata Mutual Fund.

GIC invested about Rs 894 crore while Ivanhoe chipped in with Rs 375 crore. Capital Group pumped in Rs 825 crore.

While Macrotech said that GIC was a new investor, the Singapore wealth fund had invested a small amount—Rs 16.5 crore—as an anchor investor ahead of the company’s initial public offering in April this year. It is possible though that GIC subsequently sold those shares. Ivanhoe had put in Rs 116 crore at the time.

Macrotech had raised Rs 2,500 crore through the IPO. The IPO was covered 1.36 times, and its shares had dropped on their stock market debut. However, its shares have more than doubled since then.

Macrotech said it plans to use the fresh money to grow in under-represented micro markets of Mumbai and Pune. The company is also exploring plans to enter Bengaluru. The company aims to nearly double its pre-sales to Rs 14,000 crore by 2023-24 and further to Rs 20,000 crore by 2025-26.

Abhishek Lodha, managing director at Macrotech, said the funds will help the company achieve its targets of reducing its debt and capital-light expansion through the joint development model.

Sumit Upadhyaya

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