Lodha launches Rs 4,000-cr QIP, fund raise will lead to 7.5% dilution

Close to 34 million new shares will be issued; BofA Securities, JP Morgan and Kotak Mahindra Capital are the investment banks handling the share sale

Macrotech Developers (Lodha) on Monday launched its qualified institutional placement (QIP) programme to raise Rs 4,000 crore.

Close to 34 million new shares will be issued in the QIP. The fund raise will lead to 7.5 per cent dilution. As per the Sebi formula, the base price for the QIP is Rs 1,184.7 per share, a discount of 7.7 per cent to the real estate major’s last closing price of Rs 1,283. BofA Securities, JP Morgan and Kotak Mahindra Capital are the investment banks handling the share sale.

The new shares issued under the QIP programme are likely to get listed on November 23. Lodha made its stock market debut in April where shares were priced at Rs 486 apiece. The company had raised Rs 2,500 crore in the IPO for paring of debt and for acquiring new land for development.  With a market cap of Rs 57,400 crore, Lodha is the third-most valued listed realty developer in the country after DLF (Rs 1.05 trillion) and Godrej Properties (Rs 65,000 crore).