About 51% of Macrotech’s sales share came from mid-income and affordable housing in the Sep quarter
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Microtech Developers Ltd said it has allocated more than 90% of its ₹4,000 crore qualified institutional placement (QIP) to long-term global investors following a robust response to the share sale.
The company, which operates under the ‘Lodha’ brand, said it found demand from various investors including sovereign and pension funds, mutual funds, insurers and others for the QIP since it opened on Monday.
The share sale saw new investors such as GIC, OppenheimerFunds Inc., Universities Superannuation Scheme, Tata Mutual Fund and Amundi. Existing shareholders such as Capital Group, Ivanhoe Cambridge, Wellington Fund, Nomura, Manulife Financial Corporation, Nippon, Max Life also took part in the QIP.
Macrotech said the QIP was oversubscribed over three times within five hours of opening.
“In less than seven months after the IPO, we raised so much capital from a high-quality investor base. It is a vindication of our company’s strategy of delivering and doing good quality housing, as well as of the housing market in India. It signals that investors believe in the residential sector, particularly in the mid-income and affordable segment which is our focus. With this fund-raise, we are well on course of achieving dual target of deleveraging and capital light expansion through JDA (joint development agreement) model," said Abhishek Lodha, managing director, Macrotech, in an interview.
The Mumbai-based developer plans to use proceeds of the share sale to expand its presence in the Mumbai Metropolitan Region (MMR) and Pune. It also plans to enter Bengaluru, which is seeing large creation of technology jobs and wealth.
The firm will use ₹3,000 crore of the QIP proceeds for new projects via joint development agreements and the rest to cut debt. Macrotech plans to nearly double its property pre-sales to ₹14,000 crore by 2023-24, and further to ₹20,000 crore by 2025-26. It aims to close this fiscal with sales of about ₹9,000 crore.