Lodha Developers Shares Drop 7% After Rs 1,379 Crore Block Deal
Lodha Developers' shares plunged nearly 7% in July 23 following a significant block deal worth Rs 1,379 crore. The deal involved the sale of a 1% stake in the company, executed at an average price of ₹1,386 per share, marking a 4% discount to the last closing price.
Real EstateLodha DevelopersBlock DealShare PriceMumbaiReal Estate MumbaiJul 23, 2025
As many as 99.51 lakh shares changed hands in the block deal, representing a 1% stake in the real estate developer. The transaction was executed at an average price of ₹1,386 per share, implying a near 4% discount to the last closing price. The parties involved in the trade could not be immediately identified, although CNBC-TV18 had reported that an early investor in the company was looking to offload a 1% stake. The total size of the transaction was estimated at $165 million, marking a complete exit for the investor.
The block deal also tipped off a spike in trading volumes in the counter. As many as two crore shares of Lodha Developers already changed hands, sharply higher than the one-month daily traded average of nine lakh shares. This surge in trading volumes further contributed to the volatility in the stock price.
Macrotech Developers, the parent company of Lodha Developers, kicked off the quarter with steady momentum, clocking a 10% year-on-year rise in pre-sales to ₹4,450 crore, while collections grew 7% to ₹2,880 crore. Despite the market pressure, Lodha remains confident in its growth story. The company posted ₹4,450 crore in pre-sales for the quarter, a 10% year-on-year increase, marking its fifth straight quarter of clocking ₹4,000 crore or more in sales. Collections rose 7% to ₹2,880 crore. “This consistency underscores the predictability of our diversified business model,” MD & CEO Abhishek Lodha had noted earlier.
The Mumbai-based real estate major is expanding its footprint, adding five new projects across Mumbai, Pune, and Bengaluru. Looking ahead, the developer is targeting ₹21,000 crore in pre-sales for FY26, a 20% jump over the previous year, with Mumbai expected to do the heavy lifting. It’s also eyeing a fresh gross development value (GDV) of ₹25,000 crore, on top of the ₹22,700 crore added this quarter via five new projects across Mumbai, Pune, and Bengaluru. Even with stepped-up investments in land and projects, net debt remained under control at ₹5,080 crore, staying comfortably below the internal ceiling of 0.5x net debt-to-equity.
Real estate stocks took a hit in Tuesday’s trade, with all constituents of the Nifty Realty index slipping 2% in the red. The worst hit was Lodha Developers and Oberoi Realty, followed by Brigade Enterprises, Prestige Estates, Raymond Realty, and Godrej Properties, each shedding over 2%. Despite the market pressure, Lodha Developers remains committed to its growth strategy and continues to invest in new projects to maintain its market leadership.
Frequently Asked Questions
What caused the 7% drop in Lodha Developers' share price?
The 7% drop in Lodha Developers' share price was caused by a significant block deal worth Rs 1,379 crore, which involved the sale of a 1% stake in the company at an average price of ₹1,386 per share, marking a 4% discount to the last closing price.
How many shares were involved in the block deal?
The block deal involved the sale of 99.51 lakh shares, representing a 1% stake in Lodha Developers.
What was the impact of the block deal on trading volumes?
The block deal tipped off a significant spike in trading volumes, with two crore shares of Lodha Developers changing hands, sharply higher than the one-month daily traded average of nine lakh shares.
What are Lodha Developers' pre-sales targets for FY26?
Lodha Developers is targeting ₹21,000 crore in pre-sales for FY26, a 20% jump over the previous year, with Mumbai expected to do the heavy lifting.
How is Lodha Developers managing its net debt?
Despite stepped-up investments in land and projects, Lodha Developers has kept its net debt under control at ₹5,080 crore, staying comfortably below the internal ceiling of 0.5x net debt-to-equity.
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