Macrotech Developers IPO: Opens today; Key details you should know before subscribing

The initial public offering (IPO) of the Mumbai-focused Macrotech developers – erstwhile Lodha Developers – will open for subscription today, i.e. Wednesday, April 7, 2021. The IPO has a price band of Rs 483-486 per share and it will be the first offering in the new financial year 2021-22 (FY22). The public issue will remain open for subscription till Friday, April 9, 2021.

The real estate developer seeks to raise Rs 2,500 crore through the fresh issuance of shares. The bid lot comprises of 30 equity shares and in multiples thereof. Retail investors can bid for a maximum of 13 lots.

The company proposes to use the net proceeds from the issue towards reduction of debt amounting up to Rs 1,500 crore, acquisition of land or land developmental rights aggregating up to Rs 375 crore and for general corporate purposes.

The company has reserved 35 per cent of the net offer for retail investors, 50 per cent of the offer is reserved for the qualified institutional buyers (QIBs) and the remaining 15 per cent is for the non-institutional investors (NII). Shares worth Rs 30 crore have been kept aside for employees.

Axis Capital, JP Morgan India, Kotak Mahindra Capital are the global coordinators and book running lead managers to the issue. ICICI Securities, Edelweiss Financial Services, IIFL Securities, JM Financial, YES Securities, SBI Capital Markets and BOB Capital Markets are the book running lead managers to the issue.

The finalisation of the basis of allotment is likely by April 16, 2021, and the initialisation of refunds is likely by April 19, 2021. Meanwhile, credit of shares in the Demat account is likely by April 20, 2021. Macrotech Developers' listing is likely by April 22, 2021.

Besides, Macrotech Developers has raised Rs 741 crore from 21 anchor investors on Tuesday, a day ahead of the issue opening. It informed exchanges that it has allocated more than 1.52 crore equity shares to anchor investors, at Rs 486 per share, the higher end of the price band. The anchor investors include American Funds Insurance, Ivanhoe OP India Inc, Bayvk A2 Fonds, Wellington Trust Company Brown Advisory, Government of Singapore, Citigroup Global, Abu Dhabi Investment Authority, Societe Generale and Morgan Stanley Asia among others.

Incorporated in 1995, Macrotech Developers, formerly known as Lodha Developers, is the largest real estate developer in India. The company is primarily engaged in affordable residential real estate developments. In 2019, it entered into the development of logistics and industrial parks and also develops commercial real estate. Palava (Navi Mumbai, Dombivali Region), Upper Thane (Thane outskirts), Amara (Thane), Lodha Sterling (Thane), Lodha Luxuria (Thane), Crown Thane (Thane), Bel Air (Jogeshwari), Lodha Belmondo (Pune), Lodha Splendora (Thane) and Casa Maxima (Mira Road) are some of its affordable and mid-income housing projects. The company generates maximum revenue from this segment as in fiscal 2020, the revenue from this segment accounted for 57.77 per cent.