The large cap realty stock opened flat in today’s trading session after the company raised funds worth Rs 650 crores from two foreign banks.
With a market capitalization of Rs 75,029 crores, Lodha Group, listed in the name of Macrotech Developers, opened their Wednesday’s trading session flat at Rs 777 and went to hit intraday low of Rs 756 level.
According to reports, the company has raised funds worth Rs 650 crores in debt facilities from Standard Chartered Bank and Deutsche Bank for three years to refinance its high cost debt.
Standard Chartered is said to provide Rs 245 crores at 9 percent payable annually, while Deutsche Bank is providing Rs 405 crores at 9.5 percent payable quarterly.
Both the banks have provided debt in the form of Non-Convertible debenture (NCD) with different terms. Bonds raised from Deutsche Bank are unsecured and NCDs raised from Standard Chartered banks are Secured.
The NCDs subscribed by DB,the interest rate are charged at a spread of 2.7 percent over 90-days treasury bills issued by the Reserve Bank of India (RBI).The spread on T-bills will be reduced by 25 basis points from December 2023 quarter.The Rs 245 cr NCDs issued to Standard Chartered bank have a clause that the bank would charge 50 basis points more for each rating downgraded of Lodha.
Looking at the company’s financial statements, the revenue of the company during June quarter was at Rs 16,174 crores and net profit was recorded as Rs 178 crores during the same period.
Looking at the important financial ratios of the company, the Return on equity ratio was at 4.12 percent and Return on Capital Employed was at 4.2 percent during FY22-23.
Headquartered in Mumbai, Lodha or Macrotech developers is an Indian Multinational real estate company. It was founded by Mangal Prabhat Lodha in the year 1980. The company has developed many residential and commercial properties in Mumbai,Thane,Hyderabad,Pune and London.
Written by Vaibhav Patil
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