The initial share sale of Macrotech Developers Ltd. received muted response from investors on the first day of its offering.
The Rs 2,500-crore issue was subscribed 0.26 times as of 5 p.m. on April 7 led by qualified institutional buyers, according to exchange data. The IPO will close on April 9.
Subscription Details:
- QIBs: 0.58 times.
- Non-institutional investors: 0.11 times.
- Retail investors: 0.15 times.
- Employees: 0.04 times.
The Mumbai-based real estate developer's IPO—which is the twentieth so far this year—comprises a fresh issue of 5.14 crore shares at Rs 483-486 apiece.
This is the third attempt by Macrotech (erstwhile Lodha Developers Ltd.) to launch its IPO after its first two attempts—in 2009 and 2018—failed following the global financial crisis and the IL&FS collapse, respectively.
The company plans to use proceeds from the issue to repay debt worth Rs 1,500 crore and acquire land and development rights worth Rs 375 crore, and the rest for general corporate purposes. It has also raised Rs 740 crore from 14 anchor investors. The company has allocated 1.52 crore shares at Rs 486 apiece.
Axis Capital, JPMorgan, Kotak Investment Banking, SBI Capital Markets, BOB Capital, ICICI Securities, Edelweiss, IIFL, JM Financial and Yes Securities are the Book running lead managers.
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