Macrotech, formerly Lodha developers, to open ₹25,000 million IPO next week
Macrotech Developers Ltd, formerly known as Lodha developers, is set to release the second-biggest initial public offering (IPO) in the real estate market of the country next week.
The IPO, scheduled to open on April 7 and close on April 9, has set the price band of ₹483-486 per equity share.
Here is all you need to know about the issue:
> The offer aims to raise ₹25,000 million through the issue of equity shares with an employee reservation portion aggregating upto ₹300 million as per the draft red herring prospectus (DRHP) filed by the company with the Securities and Exchange Board of India (Sebi) in February.
> The object of the issue described in the DRHP is the reduction of aggregate borrowing of the company amounting to ₹15,700 million and land acquisition for ₹3,750 million, as well as other corporate purposes.
> The promoters of the offer are Abhishek Mangal Prabhat Lodha, Rajendra Narpatmal Lodha, Sambhavnath Infrabuild and Sambhavnath Trust.
> The issue is the second-largest in the real estate sector of India after DLF Ltd, which went public in 2007.
> The company that claims to be India’s largest real estate developer in the DRHP was founded by billionaire and lawmaker Mangal Prabhat Lodha.
> The real estate sector of India witnessed a growth of approximately 10 per cent from $50 billion in 2008 to $120 billion in 2017 and is expected to grow further and reach $1 trillion by 2030, the company said in the Sebi documents.
> Moody’s Investors Service has also changed the outlook on the developer’s ratings from negative to stable in November, reported Bloomberg, citing better liquidity after the improvement in its operating performance. The Caa1 rating reflects a high degree of refinancing risk for the firm, it said, reported Bloomberg.
> The company listed Covid-19, its geographical concentration in and around the Mumbai Metropolitan Region exposing it to economic regulations and other natural disasters of the region and delay in the completion of projects from their expected timeline as risk factors.
> Axis Capital JP Morgan India and Kotak Mahindra Capital Company are the global coordinators and book running lead managers to the issue of the company that built Trump Towers in India.
> ICICI Securities, Edelweiss Financial Services, IIFL Securities, JM Financial, YES Securities (India) Ltd, SBI Capital Markets and BOB Capital Markets are the book running lead managers of the issue. Link Intime is the registrar to the issue.