The initial public offer (IPO) of Macrotech Developers received bids for 4.94 crore shares as against 3.64 crore shares on offer, according to the stock exchange data at 17:00 IST on Friday (9 April 2021). The issue was subscribed 1.36 times.

The issue opened for bidding on Wednesday, 7 April 2021, and it will close today, 9 April 2021. The price band for the IPO was set at Rs 483-486 per share.

The issue comprised of fresh issue of equity shares aggregating up to Rs 2500 crore (including anchor portion of 1,52,46,913 equity shares).

Ahead of the IPO, the company on 6 April 2021 finalized allocation of more than 1.52 crore equity shares to anchor investors at a price of Rs 486 per share aggregating to Rs 741 crore.

Out of net proceeds from the fresh issue, an amount of Rs 1500 crore is proposed to be utilized towards prepayment, repayment, or redemption (earlier or scheduled), of all or a portion of certain borrowings availed by the company and some of its subsidiaries.

Further, an amount of Rs 375 crore is proposed to be used for acquisition of land or land development rights. The balance net proceeds will be used for general corporate expenses.

Macrotech Developers, formerly known as Lodha Developers, is one of the largest real estate developers in India. The core business of the company is residential real estate developments with a focus on affordable and mid-income housing. It also develops commercial real estate, including as part of mixed-use developments in and around core residential projects.

The Lodha group has been involved in the real estate business since 1986. The company commenced operations in Mumbai, developing affordable housing projects in the suburbs of Mumbai, and later diversified into other segments and regions in the MMR and Pune.

On a consolidated basis, Macrotech Developers reported a net loss of Rs 270.40 crore and sales of Rs 2915.01 crore in the nine months ended on 31 December 2020.

Powered by Capital Market - Live News