With April’s start, investors are again looking at IPO market and this time, they have Macrotech Developers in the primary markets. The offer opens on 7 April and is priced in the range of INR483 – 486 per share. Given the disappointing listing performances in the recent past, Macrotech Developers IPO GMP didn’t start on a very positive note.  However, it has picked up pace following enthusiastic demand from institutional investors.
Lodha Developers IPO details
| Subscription Dates | 7 – 9 April 2021 |
| Price Band | INR483 – 486 per share |
| Fresh issue | INR2,500 crore |
| Offer For Sale | Nil |
| Total IPO size | INR2,500 crore |
| Minimum bid (lot size) | 30 shares |
| Face Value | INR10 per share |
| Retail Allocation | 35% |
| Listing On | NSE, BSE |
A point to note is that there is no OFS component and all proceeds will go towards debt reduction which is a major concern for investors. On the flipside, the good part is that the company has kept pricing in line with fundamentals and balance sheet realities. Compared to several real estate players trading at high valuations, the Price/Earnings ratio of Macrotech Developers has been kept in the range of 26.16 – 26.32. Its Return on Net Worth (RONW) is also at a respectable 17.8%.
Macrotech Developers IPO GMP (Grey Market Premium) rates
| Date | GMP (in INR) | Kostak (in INR) | Subject to Sauda (in INR) |
| 8 April 2021 | 15 | – | – |
| 7 April 2021 | 10 | – | – |
| 6 April 2021 | – | – | – |
| 5 April 2021 | – | – | – |
Macrotech’s affordable and mid-income housing developments accounted for 57.8% and 57.8% of its total residential sales, during the nine months ended 31 December 2020 and the FY2020, respectively. As of 31 December 2020, the company has 91 completed projects comprising approximately 77.2 million square feet of Developable Area. It also has 36 ongoing projects comprising approximately 28.8 million square feet of Developable Area, of which 23.57 million square feet is in affordable and mid-income housing.
