Macrotech Developers IPO may disappoint investors on Monday; here’s why

Investors who bid for Macrotech Developers’ shares during the book-building process of the initial public offerings (IPO) may face some disappointment on Monday, as the grey market premium on the unlisted shares were hovering below the issue price on Saturday.

Abhay Doshi, Founder, UnlistedArena.com dealing in pre-IPO and unlisted shares told Money9.com that Macrotech Developers is trading at a discount of Rs 3-Rs 5 in the unofficial market at present.

Shares of the company are set to list on bourses on April 19, Monday. The equity shares will be listed on the BSE and the National Stock Exchange.

Earlier, the IPO of realty major was subscribed 1.36 times on the last day of subscription on April 9. The issue received bids for 4,94,64,480 shares against 3,64,18,219 shares on offer, as per NSE data. The portion meant for qualified institutional buyers (QIBs) was subscribed 3.05 times, non-institutional investors 1.44 times and retail individual investors (RIIs) 40 per cent.

The price range for the offer was fixed at Rs 483-486 per share. Macrotech Developers Ltd, erstwhile Lodha Developers, also raised Rs 740 crore from anchor investors.

This was the third attempt by Lodha Developers to launch a public issue and list its shares on the stock exchanges. In 2009 and 2018, the company had filed IPO documents and also got Sebi approval but did not hit the capital market as market conditions were not conducive.