Lodha Developers IPO opens on April 7, all you need to know

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Mumbai-based Macrotech Developers Ltd, formerly known as Lodha Developers Rs 2,500 crore initial public offering (IPO) is set to hit the streets next week on April 7. This is the third attempt when the developer has come up with its IPO. Previously in September 2009, the company had tried to raise Rs 2,800 crore via IPO and later in 2018. However, the global recession forced it to shelve the issue in 2009, while it retreated in 2018 due to adverse conditions in the sector. Here are key things to know before subscribing to the public issue:

Open and close date: The IPO of Macrotech Developers will open on April 7 and the three-day issue will close on March 9.

Issue size: The Mumbai-based real estate developer plans to raise Rs 2,500 crore through the public listing of shares. The company will be issuing 5,14,40,328 equity shares of Rs 10.

Price band: The price band for IPO Macrotech Developers has been fixed at Rs 483-486 per share.

Lot size: Investors can bid for a minimum of 30 equity shares and in multiples, thereafter, translating to a minimum bidding amount of Rs 14,580 at the higher end of the price band. A retail investor can at max apply for 13 lots or 390 shares for 1,89,540.

Objective of issue: The company intends to use net proceeds to reduce aggregate outstanding borrowings of the company on a consolidated basis. To acquire land or land development rights. To meet general corporate purposes.

About the company: Incorporated in 1995, Macrotech Developers erstwhile Lodha Developers is the largest real estate developer in India. The company is primarily engaged in affordable residential real estate developments and in 2019, it entered into the development of logistics and industrial parks and also develop commercial real estate.

Financials:

Based on 9M-FY2021, the issue is having a negative P/E.

What’s in it for retail investors: Half of the issue is reserved for qualified institutional buyers, 35% for retail investors and 15% for non-institutional bidders.

Book Running Lead Managers and Registrar to the IPO: The book running lead managers to the issue are ICICI Securities, Edelweiss Financial Services, JM Financial, YES Securities (India), SBI Capital Markets and BOB Capital Markets. While the global co-ordinators book running lead managers are Axis Capital, JP Morgan India Private Ltd, Kotak Mahindra Capital Company Ltd. The registrar to the issue is Link Intime India.

Listing of shares: The issue is likely to finalize the basis of allotment by April 16, and the initialization of funds will take place by April 19. While the credit of equity shares to depository accounts of the allottee will be done on April 20. The developer is expected to make its stock market debut BSE & NSE on April 22, 2021.