Lodha will issue 3.4 crore shares to qualified institutional investors at a floor price of Rs 1184.7 per share, a discount of 7.8 per cent to Monday’s closing price of Rs 1283.45, according to the terms sheet issued by the bankers to the deal. The issue will consist of 100 per cent primary issuance, and the transaction will result in a 7.5 per cent stake dilution.
Bank of America Securities, JP Morgan, and Kotak are managing the share sale, the terms sheet showed.
“The Company intends to use the net proceeds for various purposes, including but not limited to, capital expenditure including acquisition of land, land development rights or development rights, deleveraging and general corporate purposes,” the terms of the transaction showed.
Macrotech shares have rallied 98 per cent in the last six months. The company raised Rs 2500 crore from the primary market through an initial public offering at Rs 486 per share in April this year. The stock has rallied 164 per cent since its listing.
As of March 31, 2021, Lodha has around Rs 6,000 crore of debt maturities in India operations over the next 24 months.
In May, Abhishek Lodha, MD, and CEO of the group said that the group aims to turn a zero-debt company over the next three years, focusing on mid-income, affordable housing, and industrial & logistics business.
Indian companies raised around $13.4 billion through equity capital markets (ECM) issuances during the first half of 2021, according to data compiled by Refinitiv. This is a 36.1 per cent decline in proceeds from the first half of 2020, despite a 91.7 per cent growth in the number of ECM offerings as deals were done in a smaller value.
Real Estate took second place with a 10.8 per cent market share in terms of issuances, while Industrials rounded out the top three sectors with a 7.6 per cent market share of India’s ECM activity, the data showed.
