Macrotech Developers Ltd’s, erstwhile Lodha Developers, which lately raised Rs 2,500 crore by means of initial public supplying (IPO), on Friday informed that it will list its equity shares on stock exchanges on Monday, April 19, 2021. The challenge was sold from April 7-9, in the price tag band of Rs 483-486 per share. The public challenge received a lukewarm response from investors and was subscribed 1.36 instances. The reserved portion of certified institutional purchasers (QIBs) was subscribed 3.05 instances and that of non-institutional investors subscribed 1.44 instances. While the portion set aside for retail person investors saw a subscription of 40 per cent and staff 17 per cent.
The challenge looked unattractive from the extremely starting owing to its higher indebtedness. The burdensome balance sheet tends to make investors wary. “I am expecting a discount listing. The issue may list in the range of Rs 470-490 per share. In my personal opinion, risk-averse investors can look to exit from the stock as other decent options are available in this space,” Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares, told TheSpuzz Online.
This was the third time when the realty developer came up with an initial public give. Previously, in September 2009, the Lodha Developers had attempted to raise Rs 2,800 crore and later in 2018. However, the international recession forced it to shelve the IPO in 2009, whilst it retreated in 2018 due to adverse situations in the sector. “Currently, looking at the recent listings it is always better to book listing gains and wait for the next opportunity,” Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, told TheSpuzz Online.
Lodha Developers group firm Macrotech IPO was the initially public challenge of the new fiscal 2021-22 and it will list amid the second wave of COVID-19 issues. Even as the firm has a powerful presence in Mumbai Metro regions (MMR), Macrotech Developers’ debt is a main result in of concern. Citing high-priced valuations and higher debt, Aditya Kondawar, Founder, COO, JST Investments, had offered an ‘avoid’ rating on the Lodha IPO. “We feel there are other listed players that are available with minimal debt which can be looked at,” Kondawar told TheSpuzz Online.
The firm commenced operations in Mumbai, creating reasonably priced housing projects in the suburbs of Mumbai, and later diversified into other segments and regions in the MMR and Pune. As of December 31, 2020, it has completed 91 projects comprising about 77.22 million square feet of developable region.
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