MUMBAI: Macrotech Developers (formerly Lodha Developers) is launching the second-largest real estate sector IPO in India on Wednesday through which the city-based company is targeting to raise Rs 2,500 crore. The IPO will be open between April 7 and 9, and the price band is set at Rs 483-486 per share.
At the upper end of the IPO price band, Macrotech will have a market capitalisation of about Rs 21,750 crore. DLF with a market cap of Rs 72,205 crore and Godrej Properties with Rs 38,679 crore are currently valued more than Macrotech’s estimated valuation.
Of the amount being raised through the IPO, Rs 1,500 crore will be used to reduce the company’s debt, Rs 375 crore for acquiring land and land developmental rights, while the rest will be kept aside for general corporate purpose spends.
This is the third time that the company has tried to get listed, after withdrawing its prospectus in 2009 and then again in 2018. Given the grey market premium on some of the popular websites for primary markets, the stocks look fully valued at the current IPO price.
The 26-year-old developer is a major player in the residential real estate market with its business mainly concentrated around the Mumbai metropolitan region. In 2019, it entered the logistics and industrial parks segment as a developer, the company said in the IPO document.
Axis Capital, J P Morgan and Kotak Investment Banking are among the 10 merchant bankers that are managing the offer.