Lodha Group's Macrotech Developers to launch IPO on April 7; check issue size, price band, other key details

Mumbai-based Macrotech Developers Ltd (erstwhile Lodha Developers Ltd) is all set to launch its initial public offering (IPO) for subscription on April 7. The Rs 2,500-crore issue will close on April 9.

This is the company's third attempt to launch an IPO after it failed to raise Rs 2,800 crore in September 2009 due to global recession and then later in 2018 because of adverse market conditions.

The issue will open for subscription on April 7 and close on April 9.

The price band for the offer has been determined at Rs 483 – Rs 486 per equity share.

Investors can bid for a minimum of 30 equity shares and in multiples of 30 shares thereafter. This implies a minimum investment amount of Rs 14,580 per lot at the higher price band.

The IPO consists of fresh issuance of equity shares worth Rs 2,500 crore.

The company has reserved Rs 30 crore worth equity shares for eligible employees. Up to 50 percent of the net issue will be reserved for qualified institutional buyers (QIB), 15 percent for non-institutional bidders and not less than 35 percent for retail individual bidders.

The company proposes to utilise the net proceeds from the fresh issue towards reduction of aggregate outstanding borrowings of the company 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.

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 (India), SBI Capital Markets and BOB Capital Markets are the book running lead managers to the issue.

Macrotech Developers is amongst the largest real estate developers in India by residential sales value for fiscal 2014 to 2020. As of December 31, 2020, it has completed approximately 77.2 million square feet of developable area across 91 projects. It has 54 ongoing and planned projects having approximately 73.8 million square feet of developable area.

In 2019, Macrotech Developer’s forayed into the development of logistics and industrial parks and entered into a joint venture with ESR Mumbai 3 Pte. Ltd (ESR), a subsidiary of ESR Cayman Ltd, an Asia Pacific-focused logistics real estate platform.

The company’s listed peers are Brigade Developers, DLF, Godrej Properties, Oberoi Realty, Prestige Estates Projects, Sobha and Sunteck Realty.

The core business of Macrotech Developers is residential real estate developments with a focus on affordable and mid-income housing.