The initial public offering (IPO) of Macrotech Developers, earlier known as Lodha Developers, opened for subscription on Wednesday, April 7, and will close on Friday, April 9, 2021. The IPO has a price band of Rs 483-486 per share and the company aims to raise close to Rs 2,500 crore from the primary market.
Incorporated in 1995, the company founded by Mangal Prabhat Lodha is the largest real estate developer in the country and is primarily engaged in affordable residential real estate development projects among others. The latest attempt by the Mumbai-based real estate major will be it’s third to launch the IPO. Their previous two attempts in 2009 and 2018 failed due to unfavorable market conditions.
On the contrary, the company’s new IPO attempt comes out at a similar time when there is uncertainty in the market and listing gains for fresh issues have diminished. Interestingly though, the issue has been priced competitively compared to others that came in recent times.
According to the details given on the red herring prospectus available on the National Stock Exchange (NSE), the company proposes to utilise the net proceeds from the issue towards reduction of debt amounting up to Rs 1,500 crore, acquisition of land/land developmental rights aggregating up to Rs 375 crore and for general corporate purposes.
Prospective investors who wish to subscribe to the IPO can bid in the lot of 30 equity shares and multiples thereof. The shares will be listed on both BSE and NSE and at the upper limit price band, they may have to shell out Rs 14,580 to get a single lot of Macrotech Developers.
According to the Economic Times report, the company has appointed Kotak Mahindra Capital, J.P. Morgan India, and Axis Capital, as the global coordinators and book running lead managers to the issue. Link Intime India is the registrar of the issue. The company has also listed Edelweiss Financial Services, ICICI Securities, JM Financial, BOB Capital Markets and SBI Capital Markets as the other book running lead managers to the issue.
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