Macrotech Developers Ltd., also known as Lodha, has entered into a share purchase agreement to acquire a 50% stake in the paid-up equity capital of Siddhivinayak Realties Pvt. Ltd., it said in an exchange filing.
The total consideration to acquire the shares, along with securities and instruments is ₹250 crore. This will be done through transfer of funds through banking channels.
Siddhivinayak Realties is engaged in the business of real estate development and has rights in various lands, including to develop free sale portion of an SRA project in the city of Mumbai. The transaction will be completed within a week.
As of March 31, 2023, Siddhivinayak Realties had a net worth of nearly ₹84 crore, while its turnover for the last three financial years has been nil.
Macrotech recently raised ₹3,300 crore through a QIP with existing shareholders like Capital Group, GQG, Nomura, Abu Dhabi Investment Authority being allotted shares. Invesco Oppenheimer, Blackrock, Franklin Templeton and others were also allotted shares in the issue.
Brokerage firm Jefferies expects shares of Macrotech to triple over the next five years, setting a price target of ₹3,000 by financial year 2029.
The brokerage said that Macrotech is a key beneficiary of the currently underway housing upcycle. The company also has a 600 million square feet township landbank in the Mumbai suburbs, which is seeing rapid infrastructure development.
Shares of Macrotech ended 1.7% lower on Thursday at ₹1,128. The stock is up 160% over the last 12 months.
