Macrotech Developers to enter Bengaluru market to tap property demand

Real estate company, Macrotech Developers, which has projects in Mumbai and Pune, plans to enter the Bengaluru market to tap enormous property demand in the IT city and will fund Rs 3,000 crore equity capital for increase as it plans to surge its yearly sales bookings by about three times to Rs 20,000 crore by 2025-26, as per a top company official. The Mumbai-based firm, erstwhile Lodha Developers, is one of the preeminent real estate companies in the nation and sells its properties under the Lodha brand. Macrotech Developers Managing Director and CEO Abhishek Lodha told the media that the firm would use Rs 3,000 crore, out of the total Rs 4,000 crore recently being raised through the sale of shares to institutional investors, for an increase in a capital-light manner in Mumbai Metropolitan Region (MMR) and Pune. With their balance sheet being rock solid right now, the demand is just becoming huge. That is why they have raised fresh capital within seven months of their initial public offer (IPO). Out of Rs 4,000 crore raised via Qualified Institutional Placement (QIP), Rs 3,000 crore will be utilised for growth, mainly in the regions MMR and Pune, as there are a lot of growth possibilities. They are planning to have Rs 14,000 crore of sales by FY24 (2023-24 financial year) and Rs 20,000 crore by FY26 (2025-26), which is about three times their number before Covid-19. Macrotech Developers had clocked sales bookings of Rs 5,970 crore during the previous financial year and is aiming to attain Rs 9,000 crore in the current 2021-22. The increase is huge. It is going to be more focused on middle income and affordable housing. The geographical focus will be around MMR and Pune, where they will use funds in a capital-light manner. They will not purchase large parcels of land. He emphasised that the firm's debt-equity ratio is among the lowest. They are increasing in a capital-light model where because of the firm's brand and execution strength, landowners are partnering with them. Image Source