Mumbai-based Macrotech Developers Ltd, erstwhile Lodha Developers, is attempting luck for the third time to raise cash from capital markets in an IPO, with a proposed Rs 2,500 crore public concern. Macrotech, on Tuesday filed a draft red herring prospectus for the initial public supplying. This is the third try when the developer has proposed its IPO. The enterprise previously attempted to raise Rs 2,800 crore through IPO in September 2009 and later in 2018. The international recession forced it to shelve the concern in 2009, although it retreated in 2018 due to adverse circumstances in the sector.
Gaurav Garg, Head of Research, CapitalThrough Global Research Limited, told TheSpuzz Online that the enterprise saw elevated demand in the premium and luxury residential segment for the duration of the quarter with bookings of Rs 1,000 crore. Bookings worth Rs 1,500 crore have been observed in the middle-earnings and economical segments. “With a well-established brand value and diversified portfolio in both the residential and commercial sectors, the company may be successful in raising the funds through IPO this time,” Garg stated.
Macrotech Developers Ltd plans to utilise the net proceeds from the concern for reduction of the aggregate outstanding borrowings of the enterprise on a consolidated basis, acquisition of land or land improvement rights and common corporate purposes. The listed peers are Brigade Enterprises Ltd, DLF Limited, Godrej Properties Ltd, Oberoi Realty Ltd, Prestige Estates Projects Ltd, Sobha Ltd and Sunteck Realty Limited. Among these, only Sobah Ltd has the lowest P/E ratio of 15.12, although Godrej Properties Ltd has the highest P/E ratio of 135.51. As of nine months ended December 31, 2020, Macrotech Developers reported a profit of Rs 264.3 crore, although in the economic year 2020, it posted a profit of Rs 744.8 crore.
The book operating lead managers to the concern are ICICI Securities, Edelweiss Financial Services Ltd, IIFL Securities Ltd, JM Financial Ltd, Yes Securities India Ltd, SBI Capital Markets Ltd and BOB Capital Markets Ltd. While the registrar to the Lodha Developers is Link Intime India Private Ltd. According to the Anarock report, Macrotech Developers is the biggest true estate developer in India by residential sales worth for the economic years 2014 to 2021. Its core company is residential true estate developments with a concentrate on economical and mid-earnings housing.
The true estate industry in India has grown at a CAGR of roughly 10 per cent from $ 50 billion in 2008 to $120 billion in 2017, and is anticipated to additional develop at a CAGR of 17.7% to attain $1 trillion by 2030. The true estate industry contributed roughly 6 per cent to India’s GDP in 2017 and is most likely to contribute roughly 13% to India’s GDP by 2025.