The IPO of realty major Macrotech Developers Ltd, erstwhile Lodha Developers, will open for subscription on Wednesday. The Mumbai-based firm raised Rs 740 crore from 14 anchor investors ahead of its initial public offer. The company informed that it has allocated 1.52 crore shares at Rs 486 per scrip to anchor investors. The price band was fixed at Rs 483-486 per share. As many as 12 foreign portfolio investors participated in the anchor.
Macrotech Developers will raise Rs 2,500 crore through fresh issue of shares. The issue will close on April 9. The IPO price size is fixed Rs 483-486 with face value of Rs 10 per equiry share. A retail investor is allowed to bid for a minimum of one lot which comprises 30 shares. A retail-individual investor can apply for up to 13 lots (390 shares or Rs 189,540).
The firm will decide the basis of allotment on April 16. Shares will be credited to demat accounts of investors on April 20. The shares of Lodha Developers will be listen on the BSE and NSE on April 22.
From IPO proceeds, Macrotech mainly proposes to reduce debt by up to Rs 1,500 crore and acquire land or land developmental rights aggregating up to Rs 375 crore.
Real estate industry expert Ramesh Nair, who was former CEO of JLL India, said the Lodha IPO could generate significant interest with residential sales significantly improving across the country over the last six months driven by low-interest rates and pent up demand.
"With two successful REIT listings (Mindspace and Brookfield) and two of the biggest ever office portfolio deals (Blackstone-Prestige and Brookfield-RMZ), 2020 was probably the best year for commercial capital markets," he mentioned.
On Monday, Macrotech Developers MD Abhishek Lodha expressed confidence that its IPO will be successful given the response that the company has been receiving from domestic and global investors in pre-IPO roadshows.
This is the third attempt by Lodha Developers to launch a public issue and list its shares on the stock exchanges. In 2009 and 2018, the company had filed IPO documents and also got SEBI approvals but did not hit the capital market as market conditions were not conducive.
Macrotech Developers revenue from operations stood at Rs 9,580 crore in the 2019-20 fiscal. In the first nine months of the last fiscal, revenue stood at Rs 2,920 crore. The company posted a profit of Rs 1,210 crore in 2019-20 but has suffered a loss of Rs 260 crore in the April-December period of last fiscal due to the pandemic.
Macrotech Developers sales booking stood at about Rs 6,600 crore in 2019-20. In the first nine months of last fiscal year, sales bookings stood at nearly Rs 3,400 crore, of which around Rs 2,500 crore was achieved in the October-December quarter.
Lodha Developers, now renamed Macrotech Developers, was founded in 1995 by Mangal Prabhat Lodha. As of December 31, 2020, the company has completed approximately 77.2 million square feet of developable area across 91 projects. It has 54 ongoing and planned projects having approximately 73.8 million square feet of developable area.
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