Merger of National Standard, a Subsidiary of Property Developer Lodha Group, and Macrotech Developers Puts Small Investors in a Fix

National Standard India's shares, which are controlled by the Lodha Group, plummeted 5% on 27th January 2022, the day's lowest price. This was because the company was going to merge with the Lodha Group's main business, Macrotech Developers. The merger of the Lodha Group leaves small investors stuck in this mid-cap company.

When National Standard and Macrotech were combined on Thursday, the combined company had a market value of more than Rs 20,000 crore. The new company will be called Macrotech and it will be worth Rs 228 crore.

There were 421 times as many shares of National Standard India, which had a turnover of Rs 5 crore in FY20 and Rs 17 crore in the following year. The company had a value of Rs 225 crore in the book, but the market value was 37,444 crore.

It ended the day on Thursday at Rs 10,165.95, which is about the same as it did on Wednesday.

Brokers say that a lot of people have already bought the stock at higher prices because of the sharp sell-off in the last three months.

About 15 years ago, the company stopped making bead wire. In 2010, the company became a real estate company, and it started building homes in Thane's central business district, Wagle Estate. This is how it worked: Macrotech, which had a market value of Rs 60,992 crore on Thursday, owned 73% of the National Standard.

It was approved by Macrotech's board on January 25 to merge three of its listed subsidiaries into itself. National Standard (India), Roselabs Finance, and Sanathnagar Enterprises were all listed. In Roselabs Finance, the Lodha Group owns 74.25 percent and owns 72.70 percent of the company.

People who own shares in National Standard India worth Rs 10.17 lakhs will get nine shares in Macrotech Developers worth Rs 11,403.

They told stock markets on Thursday that all three of their subsidiaries don't have a big business or a plan to make money in the future. There were some development projects done by two of the three subsidiaries: "National Standard and Sanathnagar Enterprises." These projects were done in the past, and now they only have some inventory or investments.

It was worth about Rs 100 million before Covid came along. It's now worth more than Rs 20,000 crore, even though Macrotech doesn't trade very often.