Lodha Developers' ₹500 crore Non-Convertible Debenture (NCD) Offering is Acted Upon by SNG & Partners
In a strategic move to strengthen its financial position and fund future growth, Lodha Developers, a leading player in India's real estate sector, has successfully issued non-convertible debentures (NCDs) worth ₹500 crore. The transaction, which is an integral part of Lodha Developers' broader strategy, was led by AdityaVikramDua (Partner & Head - Financial Services) at SNG & Partners, who acted as legal counsel to the investors and the debenture trustee for the transaction.
Lodha Developers, formerly known as Macrotech Developers, has a strong footprint in core urban markets such as Mumbai, Pune, and Bangalore, and boasts a diversified and expansive portfolio spanning residential, commercial, and mixed-use developments. The funds raised through the NCD issuance will be used by Lodha Developers for capital expenditure, refinancing of existing debt, meeting long-term working capital requirements, and general corporate purposes.
The NCDs were structured in two tranches: the first tranche of ₹300 crore, with a confirmed maturity in July 2028, and the second tranche of ₹200 crore, though some sources focus on the confirmed ₹300 crore private placement. The NCDs are senior, secured, redeemable, listed, taxable, transferable, and rated, with a high credit rating of "Crisil AA/Stable" by CRISIL. The most recent detailed issuance offers a 7.96% per annum interest, paid quarterly, maturing in July 2028.
The issuance of these NCDs represents a strategic effort by Lodha Developers to strengthen its financial position, fund ambitious real estate projects, and reduce debt costs. This move enhances liquidity, improves investor confidence, and supports long-term growth in a volatile real estate market. By diversifying funding sources and reducing reliance on high-interest short-term loans, Lodha helps stabilize its own and potentially the broader real estate market’s financial health.
The proceeds from the NCD issuance will be earmarked for land acquisition, project development, and reinforcing the company’s position as a market leader. The use of rated, stable NCDs attracts institutional investors, signaling financial prudence and a commitment to structured, low-risk financing.
SNG & Partners, a reputed legal firm known for advising on complex corporate finance and securities transactions, provided legal support for the structuring, drafting, reviewing, and negotiating of the transaction documents, legal due diligence, and overseeing regulatory compliances. Aniket Sawant (Associate Partner), Parvathi Menon (Senior Associate), Kartikeya Rao (Associate), and Prashant Dubey (Associate) were part of the core team that executed the transaction.
In summary, Lodha Developers' ₹500 crore NCD issuance, likely advised by SNG & Partners, is a strategic step towards strengthening its financial position, funding growth, and maintaining investor confidence in the volatile real estate market. The transaction reinforces corporate governance standards, protects investor interests, and sets a benchmark for other real estate firms. Lodha Developers is known for delivering high-quality developments under marquee brands such as "Lodha," "CASA by Lodha," and "Crown - Lodha Quality Homes."
Lodha Developers, with a diversified portfolio in residential, commercial, and mixed-use developments, used the funds raised from the issuance of NCDs for capital expenditure, refinancing existing debt, meeting long-term working capital requirements, and general corporate purposes. By attracting institutional investors with rated, stable NCDs, Lodha Developers signaled financial prudence and a commitment to structured, low-risk financing, which could potentially benefit other real estate firms as well.
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