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Macrotech Developers IPO subscribed 26% on day 1

BusinessToday.In     April 8, 2021

The initial public offer (IPO) of Macrotech Developers, one of India's largest real estate players , was subscribed 26 per cent on the first day of the bidding April 7. The IPO received bids for 95.91 lakh equity shares, subscription data on exchanges showed. The portion reserved  for retail investors was subscribed 15 percent.

Qualified institutional buyers put in bids for 58 percent of their IPO portion and non-institutional investors submitted bids for 11 percent of the reserved portion.

Macrotech Developers Ltd, earlier known as Lodha Developers, launched their IPO on April 7.

The firm plans to raise Rs 2,500 crore through the share sale which will end on April 9. On April 6, the realty firm raised Rs 740 crore from 14 anchor investors including global long only, pension funds, sovereign wealth funds multi-strategy and domestic mutual funds.

The company allocated 1.52 crore shares at Rs 486 per share to anchor investors.

Macrotech Developers IPO opens: Should you subscribe to the issue?

Promoters of the firm hold 100% stake in the firm. They plan to sell 10% stake by issuing 51,440,328 equity shares of Rs 10 face value during the IPO. Lot size of the IPO is 30 shares for which one will have to spend Rs 14,580. A maximum of 13 lots comprising 390 shares can be bought for Rs 1,89,540.

Allotment of shares is likely to be done on April 16, 2021 and the stock is expected to make its market debut on April 22.

Price band of the issue is Rs 483 to Rs 486 per equity share.

The real estate firm plans to raise money for the following purposes; a. To reduce aggregate outstanding borrowings of the company on consolidated basis. b. To acquire land or land development rights. c. To meet general corporate purposes.

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The firm filed draft papers with market regulator Securities and Exchange Board of India (SEBI)  in February. This is Lodha's  Group's third attempt to go public. The firm made attempts to launch an IPO in 2009 and 2018 but dropped plans citing challenging times for the realty sector.

Founded in 1995, Lodha Group is one of India's largest real estate players by sales bookings, that develops real estate across the residential and commercial sectors in the Mumbai Metropolitan Region (the "MMR"), Pune and London.

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