Macrotech Developers IPO: Shares trade at 4-5% premium in grey market ahead of issue


Macrotech Developers IPO will open for subscription on April 7 and will close on April 9

Shares of real estate company, Macrotech Developers (erstwhile Lodha Developers) traded at only 4-5 percent premium over issue price in the grey market, ahead of the opening of company’s IPO.

The public issue will open for subscription on April 7 and the same will close on April 9. The anchor portion, if any, will open for bidding for a day on April 6.

The company aims to raise Rs 2,500 crore through its public offer. The price band for the offer has been fixed at Rs 483-486 per share. The minimum investment lot size is 30 equity shares.

Macrotech Developers shares traded at a premium of Rs 20-25 in the grey market at Rs 506-511 against the higher end of the price band of Rs 486 per share, the IPO Watch data showed.

This is the third attempt by the Mumbai-based firm, which is known for luxury projects such as Trump Towers in Mumbai and Grosvenor Square in London, to launch an initial public offering (IPO). Lodha Group weighed a listing in 2009 and 2018, but deferred those plans due to unfavourable market conditions.

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The issue proceeds after excluding issue expenses will be utilised for repaying debt and acquisition of land or land development rights.

As of December 2020, the company had consolidated outstanding borrowings of Rs 18,662.19 crore.

The company reported a loss of Rs 264.3 crore on revenue of Rs 2,915 crore for the nine months period ended December 2020 impacted by COVID-19 crisis1““ against profit of Rs 503 crore on revenue of Rs 9,272.9 crore in the corresponding period.

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