Mumbai-based Macrotech Developers Ltd, formerly Lodha Developers, will open its IPO on April 7, in the price range of Rs 483-486 per share with the face value of Rs 10, each. The Rs 2,500 crore issue will close its subscriptions on April 9, 2021. This is the third time that the developer has offered its IPO. Previously, in September 2009, the company attempted to raise Rs 2,800 crore via an IPO and later in 2018. However, the global recession forced it to put the problem aside in 2009, when it s ‘was withdrawn in 2018 due to unfavorable conditions in the sector.
Who can bid how much during the IPO of Macrotech Developers?
Investors can bid for a minimum of 30 Equity Shares and in multiples of 30 shares thereafter, which implies a minimum investment amount of Rs 14,580 per lot. Up to 50 percent of the net issuance will be reserved for Qualified Institutional Buyers (QIB), 15 percent for Non-Institutional Investors and the remaining 35 percent for the Retail category. The part reserved for employees consists of shares worth Rs 30 crore. This company has a core business in the construction of residential housing with a focus on the range of affordable middle income housing. Vishal Balabhadruni, senior research analyst at CapitalVia Global Research, told UK Time News Online that expansionary monetary policy and growing real estate space are expected to have great potential for this company.
The main risks for Macrotech developers are increasing cases of COVID, contingent liabilities and litigation (as noted in DRHP). “With a positive industry trajectory, this IPO looks like a good investment avenue,” Balabhadruni said. The main editors of this issue are ICICI Securities, Edelweiss Financial Services, JM Financial, YES Securities (India), SBI Capital Markets and BOB Capital Markets. While the global coordinators reserve for the managers of the leaders, Axis Capital, JP Morgan India Private Ltd, Kotak Mahindra Capital Company Ltd. The registrar of the number is Link Intime India Private Ltd.
Macrotech developers have listed their peers
The peers listed are Brigade Enterprises Ltd, DLF Limited, Godrej Properties Ltd, Oberoi Realty Ltd, Prestige Estates Projects Ltd, Sobha Ltd and Sunteck Realty Limited. Of these, only Sobha Ltd has the lowest P / E ratio of 15.12, while Godrej Properties Ltd has the highest P / E ratio of 135.51.
Macrotech Developers planned to use the net proceeds of the issuance to reduce the company’s total outstanding borrowings on a consolidated basis, the acquisition of land or land development rights and for general corporate purposes. ‘company.