The initial public offering of Macrotech Developers, one of the largest real estate company in India, has been subscribed 26 percent on April 7, the first day of bidding. The offer will close on April 9.
The company plans to raise Rs 2,500 crore through its public issue, of which it received Rs 741 crore from anchor investors on April 6. After successful fundraising via anchor book, the company reduced the offer size to 3.64 crore equity shares, from 5.16 crore.
The offer has received bids for 95.91 lakh equity shares so far, the subscription data available on exchanges showed.
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The portion set aside for qualified institutional buyers has been subscribed 58 percent and non-institutional investors have put in bids for 11 percent of the reserved portion.
Retail investors' portion has been booked 15 percent and 4 percent set aside for employees.
The erstwhile Lodha Developers is going to utilise net issue proceeds for the acquisition of land or land developmental rights, and repayment of debts.
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"Macrotech Developers has a strong brand image being the largest real estate developer in the residential segment in the key Mumbai Metropolitan Region (MMR). The company has been able to collect on an average Rs 8,500 crore plus per annum and do pre-sales of around Rs 7,300 crore per annum during FY18-FY20," Sharekhan said.
The company incurred a net loss of Rs 264 crore during the nine months period ended December 2020 affected by COVID-19 and a one-time provision of Rs 500 crore.
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"However, the company has a high net debt as of Q3 FY21, which stood at Rs 16,913 crore translating to a net debt-to-equity ratio of almost 4x. Further, it has contingent liabilities of Rs 1,600 crore pertaining to its UK operations. The company has given loans and guarantees totalling almost Rs 6,000 crore as of December 2020 to related parties," said the brokerage.
Macrotech Developers has real estate projects under several brands including Lodha, CASA by Lodha and Crown – Lodha Quality Homes for their affordable and mid-income housing projects. The Lodha and Lodha Luxury brands for their premium and luxury housing projects, and the iThink, Lodha Excelus and Lodha Supremus brands for their office spaces.
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