Macrotech Developers IPO: Key Details
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Company Information
Macrotech Developers Limited, formerly Lodha Developers, are one of the largest real estate developers in India, by residential Sales value for the financial years 2014 to 2020. Their core business is residential real estate developments with a focus on affordable and mid-income housing. Currently, it has residential projects in the MMR and Pune.
In 2019, they 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. They also develop commercial real estate, including as part of mixed-use developments in and around its core residential projects.
Competitive Strengths
- One of India’s largest residential real estate developers with a leadership position in the attractive MMR market
- A well-established brand with the ability to sell at premium pricing and throughout the construction phase
- Proven end-to-end execution capabilities with continuous innovation and ability to deliver projects at a competitive cost
- Strong focus on sustainable development
- Highly diversified portfolio across price points and micro-markets in the MMR with a focus on affordable and mid-income housing
- Significant inventory of completed, ready-to-move units
- Unique ability to develop townships and generate recurring operating cash flows from them
- Innovative marketing and sales strategies
Company Strategy
- Focus on enhancing leadership position in residential developments by growing in the MMR and gradually diversifying in select tier-I Indian cities
- Leverage the leadership position to act as a partner of choice for landowners and grow using a joint development or joint venture approach
- Pursue a value-accretive land acquisition strategy
- Develop large-scale industrial parks
- Focus on development of commercial projects as part of mixed-use developments
Proceeds from Macrotech Developers IPO will be used to:
- Reduction of the aggregate outstanding borrowings of the Company on a consolidated basis;
- Acquisition of land or land development rights; and
- General corporate purposes
Macrotech Developers IPO: Financials
| 2018 | 2019 | 2020 Mar | 2020 Dec | |
|---|---|---|---|---|
| Revenue from Ops | ₹ 13,527 Cr | ₹11,907 Cr | ₹12,443 Cr | ₹2,915 Cr |
| Profit before exep.* | ₹2,710 Cr | ₹2,489 Cr | ₹1,001 Cr | ₹(58.34) Cr |
| Net Profit | ₹1,789 Cr | ₹1,644 Cr | ₹745 Cr | ₹(264.3) Cr |
| EPS (Basic) | 45.10 | 41.33 | 18.46 | (6.83) |
| As of March 2020 | EPS (Weighted) | P/E (Floor) | P/E (Cap) |
|---|---|---|---|
| Based on basic EPS | 30.52 | 15.83 | 15.92 |
Macrotech Developers IPO: Comparison with listed industry peers
| Company | P/E (Cap) |
|---|---|
| Macrotech Dev | 15.92 |
| Sector Highest | 131.10* |
| Sector Lowest | 15.46* |
| Sector Average | 42.14* |
Macrotech Developers IPO Dashboard
Issue Details
| Type | Value |
|---|---|
| Issue Size | ₹2,500 Cr |
| Fresh Issue | ₹2,500 Cr |
| Face Value | ₹10/- per Equity Share |
| IPO Price | ₹483 – ₹486 |
| Lot Size | 30 shares |
| Lots | Min 1 – Max 13 |
Key Dates
| Date Type | Date |
|---|---|
| Bid Open | 07/04/2021 |
| Bid Close | 09/04/2021 |
| Allotment Finalization | 16/04/2021 |
| Initiation of Refunds | 19/04/2021 |
| Credit of Shares | 20/04/2021 |
| Listing Date | 22/04/2021 |
Lot Size and Price
| Lots | Shares | Amount |
|---|---|---|
| 1 | 30 | ₹14,580 |
| 13 | 390 | ₹1,89,540 |
Promoter Holding
| Holding | Percentage |
|---|---|
| Pre-Issue | 100% |
| Post-Issue | [●]% |
Macrotech Developers IPO: Investor Quota and Shares Offered
| Investor Type | Quota | Shares on Offer |
|---|---|---|
| QIB | 50% | 1,02,27,742* |
| NII | 15% | 76,70,808 |
| RII (Retail) | 35% | 1,78,98,551 |
| Employees | – | 6,21,118 |
| Total | 100% | 3,64,18,219 |
Macrotech Developers IPO: Risks
- A substantial amount of debt, which could affect the ability to obtain future financing or pursue its growth strategy
- Reported a restated loss for the nine months ended December 31, 2020, and may incur additional losses in the future
- The company had negative cash flows in the past and may continue to have negative cash flows in the future
- It may not be able to successfully identify and acquire suitable land or development rights, which may affect the business and growth prospects.
- There are material outstanding legal proceedings involving the Company, Subsidiaries, Associates, Directors, Promoters and Group Companies
For complete internal and external risk factors, you can refer the RHP and DRHP of the company.
Macrotech Developers IPO: Registrar and Lead Managers
Registrar of the Issue
Link Intime India Private Limited
C-101, 1st floor, 247 Park
L. B. S. Marg, Vikhroli West
Mumbai 400 083, Maharashtra, India
Phone:(91 22) 4918 6200
Email: [email protected]
Lead Managers of the Issue
- Axis Capital Limited
- BOB Capital Markets Limited
- Edelweiss Financial Services Ltd
- ICICI Securities Limited
- IIFL Holdings Limited
- J.P. Morgan India Private Limited
- JM Financial Consultants Private Limited
- Kotak Mahindra Capital Company Limited
- SBI Capital Markets Limited
- Yes Securities (India) Limited
