Macrotech Developers will list its equity shares on Indian stock exchanges on Monday, April 19. Formerly known as Lodha Developers, the real estate major is expected to make a muted debut on the stock market amid lukewarm response to its IPO and volatile market conditions due to the second COVID-19 wave.
Macrotech Developers opened its initial public offering (IPO) on April 7 and closed the same on April 9. The shares were allotted on April 16.
The IPO was subscribed 1.36 times on the final day of bidding, with investors bidding for 4.95 crore equity shares against issue size of 3.64 crore equity shares. The portion reserved for retail investors was subscribed 40 per cent. The portion reserved for employees was subscribed 17 per cent. The company reserved Rs 30 crore worth of equity shares for its employees.
Qualified institutional buyers put in bids for 3.05 times of their IPO portion and non-institutional investors submitted bids for 1.44 times of the reserved portion. On April 6, the realty firm had raised Rs 740 crore from 14 anchor investors including global long-only, pension funds, sovereign wealth funds multi-strategy and domestic mutual funds.
The lukewarm investor response echoed in the grey market performance, where Macrotech shares traded at a premium of only Rs 5-10, or Rs 491-496 per share instead of the issue price of Rs 486 per share, as per data on IPO Watch.
Meanwhile, equity market and real estate sector are likely to face headwinds with COVID-19 cases on the rise again. As a result, Macrotech Developers might see profit booking on the day of listing.
Macrotech Developers intends to raise Rs 2,500 crore with the public issue. Of the proceeds, Rs 1,500 crore is expected to be used to reduce outstanding debt, whereas Rs 375 crore will be utilised towards acquiring land and development rights. The rest will be used for general corporate purposes.
(Edited by Vivek Punj)