Macrotech Developers IPO opens on April 7: All you need to know

NEW DELHI: The initial public offering (IPO) of Mumbai-focused Macrotech Developers — earlier known as Lodha Developers — will open for subscription on Wednesday and close on Friday to raise Rs 2,500 crore from the primary market.

The company has come out with the offer at a time when there is uncertainty in the market and listing gains for fresh issues have vanished. Interestingly though, the issue is priced conservatively compared to others that came in the recent times.

The company proposes to utilise the net proceeds from the issue towards reduction of debt amounting up to Rs 1,500 crore, acquisition of land or land developmental rights aggregating up to Rs 375 crore and for general corporate purposes.

Here are key things you need to know about the issue:

1. When will the Macrotech Developers IPO open?
   Macrotech Developers IPO will open for subscription on Wednesday, April 7 and will close on Friday, April 9.
2. What is the price band for Macrotech Developers IPO?
   The price band for Macrotech Developers IPO has been fixed at Rs 483-486.
3. What is the lot size for Macrotech Developers IPO?
   Investors can subscribe to the initial public offering (IPO) by betting for a lot of 30 shares or in multiples thereof. Retail investors can bid for a maximum of 13 lots.
4. What is the issue size of Macrotech Developers IPO?
   The offer includes fresh Issue of shares worth Rs 2,500 crore.
5. What is the quota for retail investors in Macrotech Developers IPO?
   The quota for retail investors in Macrotech Developers IPO is fixed at 35 per cent of the net offer. The QIB quota has been fixed at 50 per cent and the NII quota at 15 per cent.
6. Is there any employee quota in Macrotech Developers IPO?
   Yes. Shares worth Rs 30 crore have been kept aside for employees.
7. When will the basis for share allotment be known?
   The finalisation of the basis of allotment is likely by April 16 and the initialisation of refunds is likely by April 19. Meanwhile, credit of shares in the demat account is likely by April 20.
8. When are Macrotech Developers shares likely to be listed?
   Macrotech Developers’ listing is likely by April 22.
9. Where to check Macrotech Developers IPO share allotment?
   Those who would bid for the issue can check the subscription status on: https://linkintime.co.in/MIPO/Ipoallotment.html — the online portal of Link Intime India, the registrar to the IPO. The registrar to an issue is a Sebi-registered entity, qualified to act as such, and which electronically processes all applications and carries out the allotment process as per the prospectus.
10. What is the asking valuation for Macrotech Developers IPO?
    The Price/Earnings ratio based on diluted EPS for Fiscal 2020 for the Company at the upper end of the Price band is 26.33.
11. Which are the leading book managers to the Macrotech Developers IPO?
    Axis Capital, J.P. Morgan India, Kotak Mahindra Capital are the global coordinators and book running lead managers to the issue. ICICI Securities, Edelweiss Financial Services, IIFL Securities, JM Financial, YES Securities, SBI Capital Markets and BOB Capital Markets are the book running lead managers to the Issue.
12. What does Macrotech Developers do?
    The company is among the largest real estate developers in India by residential sales value for the fiscal 2014 to 2020. It has 54 ongoing and planned projects having approximately 73.8 million square feet developable area. In 2019, Macrotech Developer’s forayed into the development of logistics and industrial parks and entered into a joint venture with ESR Mumbai.
13. Which are listed peers of the Macrotech Developers?
    Brigade Enterprises, DLF, Godrej Properties, Oberoi Realty, Prestige Estates, Sobha and Sunteck Realty are among key listed peers on the bourses.