Ahead of the company’s Initial Public Offering (IPO), the shares of Macrotech Developers (formerly known as Lodha Developers) traded at only 4 to 5 per cent over issue price in the grey market.
The real estate company’s Public Issue for subscription will open on April 7 and closes on April 9. The cornerstone investor portion of the issue’s bid will open on April 6. Allotment of the shares of the IPO is likely to be done on April 16, and the refunds will be initiated on April 19, subject to be credited to Demat Account on April 20. The stock will be listed on the stock exchanges by April 22 tentatively.
The price band of the IPO is ₹ 483 to ₹486 per equity share. As per data from IPO Watch, the shares were traded at a premium of ₹ 20-25 at ₹506-511 in the grey market.
An applicant can buy a minimum of one lot of 30 shares amount to the cut-off of ₹14,580. And a maximum of 30 lots of 390 shares at ₹189,540.
The company aims to raise ₹ 2,500 crore through its public offer. The objective of the issue of the company is to reduce the consolidated aggregate of outstanding borrowings, acquire land or land development rights, and meet general corporate purposes.
Macrotech Developers was incorporated in 1995.
This Mumbai-based form is the largest real estate developer in the country. The company is famous for the luxury projects such as Trump Towers in Mumbai and Grosvenor Square in London. Primarily engagement and interest of the company is to provide affordable residential real estate developments. In 2019, it set a foot into the development of logistics and industrial parks.
It is the third attempt of the company to launch an IPO. Before this, they considered listing in 2009 and 2018 but deferred the plans due to unfavourable market conditions.
As of December 2020, the consolidated outstanding borrowings of the company stands at ₹ 18,662.19 crore.
The company suffered a loss of consolidated amount of ₹ 264.3 in the first three-quarters of the FY 2020-21. As of March 2020, the company booked a profit of ₹744.8 cr against the total revenue of ₹ 1,25,609.85 millions.
ICICI Securities, Edelweiss Financial Services, IIFL Securities, JM Financial, YES Securities, SBI Capital Markets and BOB Capital Markets are the Lodha Developers Lead managers to the issue.