The FY 21-22 begins with the news of an IPO launch from a real estate developing firm, Macrotech Developers Ltd. The firm prepares to float an IPO of Rs 2,500 crores containing fresh equity shares. As the company readies to file its RHP, let’s take a look at the key pointers to decide whether it is a good investment or not.
Key Points Of Macrotech Developers IPO
Erstwhile, Lodha Developers, the Mumbai based real estate development company, prepares to launch IPO seeking listing in the BSE and NSE exchanges.
- The IPO offer will open on April 7, 2021. The two days subscription window will remain open for investors until April 9, 2021
- Bidding for anchor investors will open on April 6, 2021
- The offer contains fresh equities worth Rs 2,500 crores. The issuer will release over 50 million equity shares in the price band of Rs 483-486 apiece
- Half of the issue size is reserved for qualified institutional buyers. Retail investors and non-institutional investors get 35 and 15 percent in the issue size
- Eligible employees get a reservation of up to Rs 30 crores in the offer
- Investors must apply for a minimum lot size of thirty shares, translating into a minimum investment amount of Rs 14,580 per lot
- They can increase their bidding in multiples of thirty thereafter
- ICICI Securities, Edelweiss Financial Services, JM Financial, YES Securities (India), SBI Capital Markets and BOB Capital Markets are the book running lead managers of the offer
- Link Intime India Pvt. Ltd. is appointed the registrar
Macrotech Developers has listed peers like, Brigade Enterprises Ltd, DLF Limited, Godrej Properties Ltd, Oberoi Realty Ltd, Prestige Estates Projects Ltd, Sobha Ltd and Sunteck Realty Limited. The company plans to utilise the capital from the IPO to reduce the debt burden. It will use around Rs 1500 crores from the offer to repay its borrowing. As of December, Macrotech Developers had a consolidated aggregate outstanding borrowing of Rs 18,662.19 crore.
It is the third attempt by the company to launch its IPO. Before this, it delayed its plan twice in 2009 and 2018, citing unfavourable economic conditions.
Founded in 1995, the Mumbai based real estate developing company is the largest by residential sales. As of December, the realtor had completed 91 projects comprising approximately 77.22 square feet of developable area. The company announced an income of Rs 3,160.49 crore on December 31, 2020, and reported collecting Rs 2,500 crores in booking registration.
The real estate segment is emerging slowly from the Covid-19 pandemic that plunged it into uncertainties during the same time last year. Macrotech Developers will become the first company and first real estate developer to launch IPO in the current FY.