The share price of Macrotech Developers, popularly known as Lodha, surged over 7% in early trade on Tuesday, April 15, after a long-standing family dispute between two Lodha brothers Abhishek and Abhinandan finally came to an end. The truce brought clarity not just to their personal equation, but also to the ownership of the ‘Lodha’ brand, removing the overhang that had been troubling investors for months.
Here are the four key reasons behind the latest rally in Macrotech Developers shares:
Family feud settled
One of the biggest triggers for the stock today was the announcement that Abhishek Lodha, who leads Macrotech Developers, and Abhinandan Lodha, the founder of House of Abhinandan Lodha (HoABL), have amicably resolved all outstanding disputes. The resolution came under the guidance of their parents, bringing an end to a legal tussle that had dragged on for years.
Clear brand ownership announced
In an exchange filing, Macrotech Developers announced that it holds the exclusive rights to the ‘Lodha’ and ‘Lodha Group’ brand names. Abhinandan Lodha, on the other hand, retains full rights over the ‘House of Abhinandan Lodha’ (HoABL) brand. Both parties have clarified that there is no business or brand connection between the two entities.
Legal tensions resolved after public spat
The reconciliation marks the end of a series of legal disputes. Earlier this year, Macrotech Developers had sued HoABL in the Bombay High Court, alleging misuse of the ‘Lodha’ brand and seeking Rs 5,000 crore in damages. Tensions had further escalated in early April with allegations of fabricated documents and counter police complaints. However, with both sides now agreeing to part ways amicably, the risk of further legal entanglement has been eliminated.
Macrotech Developers stock performance
Macrotech Developers share price was trading over 4% higher at Rs 1,166.70 in the early hours. In the past five trading sessions, the stock has risen around 4%, and over the last one month, it has delivered an 11% return. While the stock remains down 13% on a year-to-date basis.
Despite today’s rise, the stock has had a turbulent ride. In the past six months, it has slipped around 3%, and is down nearly 1% year-on-year. Macrotech’s market cap currently stands at Rs 1.16 lakh crore. The 52-week high and low of the company stands at Rs 1,649.95 and 1,035.15, respectively.