Major Block Deals Impact Oberoi Realty and Lodha Developers Shares

Large block deals on the stock exchanges affected shares of Oberoi Realty and Lodha Developers, resulting in a decline of up to 6%. The sales involved major institutional stakes and were conducted under specific regulatory guidelines, impacting market sentiments and causing a drop in the Nifty realty index.

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.)