Macrotech Developers IPO: 10 things to know before you subscribe2 min read . Updated: 07 Apr 2021, 05:17 PM IST
- Macrotech Developers's IPO will close on 9 April
- The company aims to raise ₹2,500 crore through the offering
The initial public offering (IPO) of Macrotech Developers opened on Wednesday i.e., April 7, 2021 and will close on April 9, 2021. Macrotech Developers (Lodha) is one of the largest real estate developers in India, by residential sales value for the financial years 2014 to 2020. Formerly known as Lodha developers, the real estate company's issue price has been fixed at ₹483- ₹486 per share. The firm aims to raise ₹2,500 crore through the offering.
On Day 1, Macrotech IPO was subscribed 0.26 times.
Here are the 10 things you need to know about Macrotech Developers IPO:
Listing: According to brokerages, the share allocation in Macrotech IPO issue is likely to be finalised on 16th April and the listing is likely to be on 22 April. It will be listing on both BSE & NSE.
Issue size: Fresh issue of 5.14 crore shares worth ₹2,500 crore at the upper end of the price band.
Lot size: The lot size in Macrotech IPO is 30 and at the upper band of ₹486 per share, application money will be Rs. 14,580 per lot. 35% of the issue has been reserved for retail investors.
Objective: The net proceeds from the issue are proposed to be utilised in reduction of the outstanding borrowings (debt) worth ₹1,500 crore and acquire land and development rights worth ₹375 crore, and the rest for general corporate purposes.
Book Running Lead Managers: ICICI Securities, Edelweiss Financial Services, IIFL Securities, JM Financial, YES Securities (India), SBI, Capital Markets, BOB Capital Markets.
Global Co-Ordinators Book Running Lead Managers: Axis Capital, J.P. Morgan India Private Ltd, Kotak Mahindra Capital Company
Registrar: Link Intime India Pvt is the registrar of Macrotech IPO.
Funds raised: Mumbai-based Macrotech has raised ₹740 crore from 14 anchor investors, the company said in a regulatory filing. The company informed that it has allocated 1.52 crore shares at ₹486 per scrip to anchor investors.
About the company: Macrotech's core business is residential real estate developments with a focus on affordable and mid-income housing. Currently, it has residential projects in the MMR and Pune. It also develops commercial real estate, including as part of mixed-use developments in and around its core residential projects.
Brokerage views: "At higher price band of ₹486, the company is demanding an TTM EV/Sales multiple of 6.3x, which is at discount to the peer average of 8.5x. Thus, the issue seems to be attractively priced," Choice Broking said in a note.
Angel Broking has a neutral stance on the issue. The brokerage said, ''Company has a strong brand in affordable and mid-income housing projects, but is not able to deliver the growth in sales and free cash flow in the last couple of years. The company has posted sales degrowth of 68% in 9MFY21 and reported a negative profit after tax of ₹265 crore. Given weak revenue growth in the past and leverage balance sheet we assign a "neutral" rating to the IPO."