NEW DELHI: Oberoi Realty and Lodha Developers experienced significant block deals totaling USD 395 million (Rs 3,412 crore) on the stock exchanges, resulting in a decrease in the shares of both real estate giants by up to 6 percent on Wednesday.
The transactions, conducted through open market exchanges, involved the sale of institutional stakes in each firm.
In the case of Oberoi Realty, around 11 million equity shares, or 3 percent of the company’s total, were sold for USD 230 million (Rs 1,987.02 crore) at a floor price of Rs 1,753.20 per share, indicating a 4 percent discount from the previous closing price, according to a term sheet obtained by PTI. Following this sale, Oberoi Realty’s stocks dropped by 4.16 percent, settling at Rs 1,750.20 each on the NSE.
Goldman Sachs was the sole placing agent for these transactions.
Meanwhile, Lodha Developers executed a block deal involving approximately 9.8 million shares, representing 1 percent of its equity, for USD 165 million (Rs 1,424.97 crore). The floor price for this deal was set at Rs 1,384.60 per share, also a 4 percent discount from its prior closing price.
Following this transaction, Lodha Developers’ stock fell by 6.64 percent, trading at Rs 1,346.50 on the NSE.
Market insiders believe that the stakes sold will likely be acquired by a mix of domestic and foreign institutional investors due to the volume and structure of the deals.
Both block deals were part of a clean-up strategy by an existing stakeholder and were executed under Rule 144A and Regulation S guidelines, typically utilized for placements to institutional and offshore investors.
This selling pressure also affected the NSE’s Nifty realty index, which saw losses across all its constituents. The index dropped 2.90 percent to 967.15, primarily due to declines in major stocks like Macrotech Developers (Lodha) and Oberoi Realty.
Godrej Properties and Prestige Estates experienced significant declines, each losing over 2 percent during the trading session.
On Monday, Oberoi Realty reported a 28 percent drop in its consolidated net profit to Rs 421.25 crore for the quarter ending June, attributed to decreased income.
In the previous year, the net profit stood at Rs 584.51 crore, with total income dropping from Rs 1,441.95 crore in the same quarter last year to Rs 1,073.98 crore this fiscal year.
In operational results, the company reported property sales worth Rs 1,639 crore in the April-June quarter of the 2025-26 fiscal year.
