Macrotech Developers Limited IPO to open on April 7, 2021, closes on April 9, 2021
- Price Band of Rs. 483 – Rs. 486 per equity share of face value of Rs. 10 each (“Equity Share”)
- Bid/Offer Opening Date – Wednesday, April 7, 2021 and Bid/Offer Closing Date – Friday, April 9, 2021
- Minimum Bid Lot is 30 equity shares and in multiples of 30 equity shares thereafter
- The Floor Price is 48.3 times the face value of the Equity Shares and the Cap Price is 48.6 times the Face Value of the Equity Shares
Risks to Investors:
• The three Global Co-ordinators Book Running Lead Managers and seven Book Running Lead Managers associated with the Issue have handled 53 public issues in the past 3 years out of which 18 issues closed below the issue price on listing date.
• 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.
• Weighted Average Return on Net Worth for Fiscals 2020, 2019 and 2018 is 41.8%.• Average Cost of acquisition of Equity Shares of our Promoters Mr. Rajendra Narpatmal Lodha, Sambhavnath Infrabuild and Sambhavnath Trust is ₹ 760, ₹ 24.17 and NIL respectively and the Issue Price at the upper end of the Price Band is ₹ 486 per Equity Share.
Chennai, April 1, 2021: Macrotech Developers Limited (erstwhile Lodha Developers Limited), a Mumbai based real estate developer will open the bid/offer period in relation to its initial public offering of Equity Shares (the “Issue”/ “IPO”) on Wednesday, April 7, 2021 and close on Friday, April 9, 2021.
The price band for the offer has been determined at Rs. 483 – Rs. 486 per equity share. The company may, in consultation with the Global Co-ordinators Book Running Lead Managers and book running lead managers (the “Managers”), consider participation by anchor investors which shall be one working day prior to the bid/offer opening date, i.e. Tuesday, April 6, 2021.
The IPO is a fresh issuance of equity shares of Rs 10 face value aggreg ating up to Rs. 2500 crore. The fresh issue includes a reservation of equit y shares aggregating up to Rs. 30 crores to eligible employees (Employee Reservation Portion) and the net issue (i.e Issue less Employee Reserv ation Portion) will be as follows: not more than 50% qualified instituti onal buyers (QIB), not less than 15% to non-institutional bidders and not less than 35% to retail individual bidders. For details, refer to the red herring prospectus dated March 31, 2020 (“RHP”) filed by the company in relation to the IPO.
The Company proposes to utilize the net proceeds from the fresh issue towards reduction of aggregate outstanding borrowings of the Company amounting up to Rs 1500 cr, acquisition of land or land developmental rights aggregating up to Rs 375 cr and for general corporate purposes.
The company is amongst the largest real estate developers in India by residential sales value for the fiscal 2014 to 2020 (Source: Anarock report). As of December 31, 2020, it has completed approximately 77.2 million square feet of developable area across 91 projects. It has 54 ongoing and planned projects having approximately 73.8 million square feet developable area. Its strength lies in its core business of residential real estate developments with a focus on affordable and mid-income housing. In 2019, Macrotech Developer’s forayed into the development of logistics and industrial parks and entered into a joint venture with ESR Mumbai 3 Pte. Limited (“ESR”), a subsidiary of ESR Cayman Limited, an Asia Pacific focused logistics real estate platform. (Source: Anarock Report).
Axis Capital Limited, J.P. Morgan India Private Limited, Kotak Mahindra Capital Company Limited are the global coordinators and book running lead managers to the Issue. ICICI Securities Limited, Edelweiss Financial Services Limited, IIFL Securities Limited, JM Financial Limited, YES Securities (India) Limited, SBI Capital Markets Limited and BOB Capital Markets Limited are the book running lead managers to the Issue.
All capitalized terms used herein and not specifically defined shall have the same meaning as ascribed to them in the RHP.
Disclaimers
MACROTECH DEVELOPERS LIMITED is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public issue of its equity shares (“Equity Shares”) and has filed the RHP with the RoC and thereafter with SEBI and the Stock Exchanges. The RHP shall be available on the website of the SEBI at www.sebi.gov.in, the websites of the GCBRLMs i.e. Axis Capital Limited, J.P. Morgan India Private Limited and Kotak Mahindra Capital Company Limited at www.axiscapital.co.in, www.jpmipl.com, www.investmentbank.kotak.com as well as on the websites of the book running lead managers, ICICI Securities Limited, Edelweiss Financial Services Limited, IIFL Securities Limited, JM Financial Limited, YES Securities (India) Limited, SBI Capital Markets Limited and BOB Capital Markets Limited at www.icicisecurities.com, www.edelweissfin.com, www.iiflcap.com, www.jmfl.com, www.yesinvest.in, www.sbicaps.com and www.bobcaps.in, respectively. Investors should note that investment in equity shares involves a high degree of risk and for details relating to such risks, see “Risk Factors” on page 26 of the RHP. The Equity Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) and, unless so registered, may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in compliance with the appli cab le state securities laws. Accordingly, the Equity Shares are being offered and sold (a) in the United States only to persons reasonably believed to be “qualified institutional buyers” (as defined in Rule 144A under the U.S. Securities Act) pur suant to Section 4(a) of the U.S. Securities Act and (b) outside the United States in offshore transactions as defined in and in compliance with Regulation S and the applicable laws of the jurisdiction where those offers and sales are made. There will be no public offering in the United States.
DISCLAIMER CLAUSE OF SECURITIES AND EXCHANGE BOARD OF INDIA (“SEBI”): SEBI only gives its observations on the offer documents and this does not constitute approvalof either the Offer or the specified securities stated in the Issue Document. The investors are advised to refer to page 467 of the RHP for the full text of the Disclaimer Clause of SEBI.
DISCLAIMER CLAUSE OF BSE (The Designated Stock Exchange): It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed orconstrued that the RHP has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the RHP. The investors are advised torefer to the page 469 of the RHP for the full text of the Disclaimer clause of the BSE Limited.
DISCLAIMER CLAUSE OF NSE: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has beencleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to page 469 of the RHP forthe full text of the Disclaimer Clause of NSE.
About Macrotech Developers Ltd.
Macrotech Developers Limited (Formerly known as Lodha Developers Limited) was incorporated as ‘Lodha Developers Private Limited’ on September 25, 1995 in the state of Maharashtra at Mumbai as a private limited company under the Companies Act, 1956. The company commenced operations in Mumbai, developing afforda ble housing projects in the suburbs of Mumbai, and later diversified into other segments and regions in the MMR and Pune. As of December 31, 2020, we have 91 completed projects comprising approximately 77.22 million squa re feet of Developable Area, of which 59.13 million square feet is in affordable and mid-income housing, 12.15 million square feet is in premium and luxury housing, 5.21 million square feet is in office space and 0.74 million square feet is in retail space.
For further details in relation to the Company, Managers, Compliance Officer of the Company, availability of application forms and RHP, please refer to statutory advertisement dated March 31, 2021.
