Macrotech Developers will list its equity shares on the Indian stock exchanges on April 19. The initial public offering (IPO) of Macrotech Developers, aimed to raise ₹2,500 crore through fresh issue of shares, had opened on April 7, 2021 and closed on April 9, 2021. Formerly known as Lodha developers, the real estate company’s issue price was fixed at ₹483- ₹486 per share.
The IPO of Macrotech Developers was subscribed 1.36 times. The institutional investor category of 10.23 million shares was subscribed 3.06 times. The non-institutional category comprising high net-worth individuals was subscribed 1.45 times. The retail portion saw tepid response, with 40% subscription.
The company plans to use the net proceeds from the issue to reduce outstanding borrowings (debt) worth ₹1,500 crore and acquire land and development rights worth ₹375 crore, and the rest for general corporate purposes.
This will be the developer’s third attempt at an IPO. It had filed IPO documents in 2009 and 2018, but did not hit the capital market due to weak market conditions.
Macrotech Developers (Lodha) is one of the largest real estate developers in India, by residential sales value for the financial years 2014 to 2020. Its core business is residential real estate developments with a focus on affordable and mid-income housing. Currently, it has residential projects in the MMR and Pune. It also develops commercial real estate, including as part of mixed-use developments in and around its core residential projects.
Lodha Group said it registered over ₹2,500 crore of bookings in the quarter ended 31 December. The firm saw increased demand for luxury and premium homes, clocking around ₹1,000 crore of bookings in this segment, while the mid-income and affordable business fetched ₹1,500 crore worth of bookings during the period.