The maiden public offer of real estate firm Macrotech Developers has subscribed 1.36 times on April 9, the final day of bidding. The issue has received bids for 4.94 crore equity shares against the IPO size of 3.64 crore equity shares, the subscription data available on the exchanges showed.
The reserved portion of QIBs, the key section for every IPO, has been subscribed 3.05 times.
The part set aside for non-institutional investors has received a subscription of 1.44 times and that of retail investors 40 percent. The portion of the company's employees was subscribed 17 percent. The company has reserved Rs 30 crore worth of equity shares for its employees.
Macrotech Developers, formerly known as Lodha Developers, had failed in its earlier two attempts (2009 and 2018) to raise funds via IPO due to weak market conditions but experts feel that the third time may be the charm given the availability of ample liquidity.
Also read: Our in-house research team's take on Macrotech Developers IPO
"In earlier two attempts Macrotech Developers failed to get its stock listed. Both the times the company took approval from Sebi but did not file red herring prospectus (RHP), this time things look different," Yash Gupta Equity Research Associate at Angel Broking said.
"We expect this time the company will be able to get listed on the stock exchange, as there is a good response from anchor investors to the IPO, and also a good response from retail and institutional investors on day 1," he added.
"We are not expecting retail participation to be a huge one in this IPO as what we have seen in earlier IPOs. Along with this we expect listing gain also to be very limited," Gupta said.
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The majority of IPOs closed in the current year 2021 has received good response from retail investors on the first day of their bidding.
Mumbai-based real estate company Macrotech Developers is planning to garner Rs 2,500 crore through its public issue, of which Rs 741 crore has already been raised from anchor investors on April 6. The company will utilise net proceeds from its issue for repaying of debt and acquisition of land or land acquisition rights.
"The company has a strong brand in affordable and mid-income housing projects but is not able to deliver the growth in sales and free cash flow in the last couple of years. The company has posted sales degrowth of 68 percent in 9MFY21 and reported a negative profit after tax of Rs 265 crore. Given weak revenue growth in the past and leverage balance sheet we assign a "neutral" rating to the IPO," Yash Gupta said.
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