Major Block Deals Impact Oberoi Realty and Lodha Developers Shares

Shares of Oberoi Realty and Lodha Developers were hit hard on Wednesday, as large block deals worth USD 395 million led to a significant decline in their value. The real estate giants saw their stock prices drop by up to 6% following these major transactions on the exchanges.

The deals involved a sale of institutional stakes through open market transactions, with Oberoi Realty seeing around 11 million equity shares change hands at a 4% discount to the previous close. Similarly, Lodha Developers experienced a 6.64% decline after a block deal of 9.8 million shares, executed at a floor price 4% below its prior close.

Goldman Sachs acted as the sole placing agent for these transactions, conducted under Rule 144A and Regulation S guidelines. The Nifty realty index reflected the selling pressure, dropping by 2.90%, as investors responded to the clean-up trade strategy employed by an existing stakeholder.

(With inputs from agencies.)