Nomura, CDPQ Arm Invest in IPO of Trump Tower India Developer
Indian rupee banknotes are counted in India. (Photographer: Dhiraj Singh/Bloomberg)

Nomura, CDPQ Arm Invest in IPO of Trump Tower India Developer

Macrotech Developers Ltd. raised 7.4 billion rupees ($101 million) from investors including a unit of Nomura Holdings Inc. and the real estate arm of Canadian pension fund Caisse de Dépôt et Placement du Québec for its proposed initial public offering.

About 14.5 million shares at 486 rupees each were allocated to 12 offshore anchor investors, which also included names such as the Government of Singapore, Wellington Asset Management, Brookfield Asset Management and Abu Dhabi Investment Authority, Macrotech said in an exchange filing Tuesday. About 700,000 shares were bought by domestic firms, HDFC Mutual Fund and Premji Invest.

The success of the 25 billion-rupee IPO is a test for the Mumbai-based company, which built Trump Tower in the city. Adverse market conditions forced Macrotech to ditch two previous attempts, Managing Director Abhishek Lodha said at a briefing Monday. The IPO and other asset monetization plans will help pare net debt to 127 billion rupees from 184 billion rupees as of December, and potentially ease scrutiny that has been building following rating downgrades.

The company has set a price band of 483-486 rupees apiece for the IPO.

“We believe that the intrinsic demand for housing in India still remains strong,” said Anurag Mathur, chief executive officer at property researcher Savills India. “Global institutional investors who are looking at India’s long-term growth story will find interest in participating in this capital event.”

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