Macrotech Developers (Lodha) IPO Details and Review

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

Macrotech Developers IPO: Comparison with listed industry peers

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