The sale of shares of Macrotech Developers (formerly known as Lodha Developers) via the Initial Public Offering (IPO) witnessed weak demand as the issue was only subscribed for 0.35 times or 35% at the end of the second day of subscription, according to data from the National Stock Exchange. Macrotech Developers received a total of 1,26.56,070 bids for 3.64.18,219 shares offered. A total of 35.44,590 bids were received at the cut-off price, according to NSE data.
Retail investors were showing a lack of demand for the issue, as their share was subscribed at 12% while the share reserved for qualified institutional buyers was subscribed at 63%.
Macrotech Developers, formerly known as Lodha Developers, plans to raise Rs 2,500 crore via IPO and sells shares in the price range of Rs 483-486 per share. The shares will likely be listed on the BSE and NSE on April 22, 2021.
Investors can bid for a minimum of a lot of 30 shares, which translates to a minimum bid size of Rs 14,580 per lot at the high end of the price range. The maximum application size per person is 13 batches.
The company plans to use the proceeds of the IPO to reduce debt and buy land for future growth.
Macrotech’s IPO will be the largest public real estate issue after DLF, which went public in 2007. Its listed peers include DLF, Godrej Properties, Oberoi Realty, Sobha and Sunteck Realty.
Macrotech was founded by billionaire Mangal Prabhat Lodha in Mumbai. The company is mainly engaged in affordable residential real estate developments and in 2019 it entered the development of logistics, industrial parks and commercial real estate. He is also known for luxury projects such as Trump Towers in Mumbai and Grosvenor Square in London.