Macrotech Developers Ltd, formerly known as Lodha Developers, on Thursday announced the price band of its Rs 2,500 crore initial public offer (IPO) at Rs 483-486 per share. The issue will hit the capital market on April 7 and close on April 9.
Macrotech Developers said in a statement that the price band for the offer has been determined at Rs 483–486 per equity share. The company may consider participation by anchor investors. The IPO is a fresh issuance of equity shares of the face value of Rs 10 each aggregating up to Rs 2,500 crore.
The company proposes to utilize the net proceeds from the IPO towards debt reduction of up to Rs 1,500 crore, acquisition of land or land developmental rights aggregating up to Rs 375 crore, and for general corporate purposes.
This would be the third attempt by Macrotech to launch a public issue and list its shares on the stock exchanges. The company had filed its DRHP (Draft Red Herring Prospectus) for the first time in September 2009, to raise about Rs 2,800 crore. It had received Sebi's nod in January 2010, but later shelved the plan due to unfavourable market conditions post the global financial crisis. In April 2018, Lodha Developers again filed the DRHP and got Sebi's approval in July 2018 to launch its IPO to raise up to Rs 5,500 crore. However, the plan was shelved amid market turmoil.
Lodha Developers, now renamed as Macrotech Developers, was founded in 1995 by Mangal Prabhat Lodha and is a leading player in the Indian real estate market. It has presence in Mumbai, Pune, and London. Lodha Group is the country's largest residential real estate developer by sales bookings. The group had made a foray into the London realty market in 2013 and acquired two prime sites in central London for an investment of about 400 million pounds. As of December 31, 2020, it 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 developable area.
Axis Capital JP Morgan India and Kotak Mahindra Capital Company are the global coordinators and book running lead managers to the issue. Further, ICICI Securities, Edelweiss Financial Services, IIFL Securities, JM Financial, YES Securities (India) Ltd, SBI Capital Markets and BOB Capital Markets are the book running lead managers to the IPO.
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