Mumbai-based Macrotech Developers Ltd, erstwhile Lodha Developers, will open its IPO on April 7, in the cost band of Rs 483-486 per share of the face worth of Rs 10, every. The Rs 2,500-crore concern will close for subscription on April 9, 2021. This is the third time when the developer has come up with its IPO. Previously in September 2009, the business had attempted to raise Rs 2,800 crore by means of IPO and later in 2018. However, the worldwide recession forced it to shelve the concern in 2009, though it retreated in 2018 due to adverse circumstances in the sector.
Who can bid how significantly in Macrotech Developers IPO?
Investors can bid for a minimum of 30 equity shares and in multiples of 30 shares thereafter, implying a minimum investment quantity of Rs 14,580 per lot. Up to 50 per cent of the net concern will be reserved for the certified institutional purchasers (QIBs), 15 per cent for non-institutional investors and the remaining 35 per cent for the retail category. The employee reservation portion is of shares worth Rs 30 crore. This business has a core small business in residential housing building with concentrate on economical mid-revenue housing variety. Vishal Balabhadruni, Senior Research Analyst at CapitalBy way of Global Research, told TheSpuzz Online that the expansionary monetary policy and the expanding genuine estate space are anticipated to have terrific prospective for this business.
The key dangers for Macrotech Developers are expanding COVID instances, contingent liabilities and litigations (as shown in DRHP). “With Industry path positive this IPO seems to be a good avenue of investment,” Balabhadruni stated. The book operating lead managers to the concern are ICICI Securities, Edelweiss Financial Services, JM Financial, YES Securities (India), SBI Capital Markets and BOB Capital Markets. While the worldwide co-ordinators book operating lead managers are Axis Capital, JP Morgan India Private Ltd, Kotak Mahindra Capital Company Ltd. The registrar to the concern is Link Intime India Private Ltd.
Macrotech Developers listed peers
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 Sobha Ltd has the lowest P/E ratio of 15.12, though Godrej Properties Ltd has the highest P/E ratio of 135.51.
Macrotech Developers has planned to utilise the net proceeds from concern towards reduction of the aggregate outstanding borrowings of the business on a consolidated basis, acquisition of land or land improvement rights, and common corporate purposes.