Lodha’s Rs 2.5k crore IPO subscribed 1.four instances

MUMBAI: The IPO for Macrotech Builders (earlier often called Lodha Builders) closed on Friday with the difficulty subscribed 1.four instances the supply. The portion reserved for institutional buyers was subscribed 3.1 instances, whereas the retail investor portion was subscribed 0.four instances and the non-institutional (excessive internet value buyers) class was subscribed 1.5 instances. The portion reserved for workers was subscribed 0.2 instances.
The Rs 2,500-crore IPO of Macrotech, one of many largest residential actual property builders within the nation, had opened on Wednesday at a worth band of Rs 483-486 per share. A day earlier than the IPO opened, the corporate had allotted about 1.5 crore shares to a clutch of international and home buyers to boost Rs 740 crore.
On Friday afternoon, the gray market premium (GMP) for Macrotech Builders was within the Rs 5-6 vary, or 1-1.5% of the IPO worth. As compared, a few of the current IPOs had commanded GMPs within the vary of 80-100%. Increased GMPs point out a greater itemizing achieve for buyers. The inventory is anticipated to be listed within the third week of this month.
On the higher finish of the IPO worth band, Macrotech Builders can have a market capitalisation of about Rs 21,750 crore. DLF with a market cap of Rs 69,173 crore and Godrej Properties with Rs 37,875 crore are at the moment valued greater than the estimated valuation of Macrotech Builders.
Of the full quantity being raised by means of the IPO, Rs 1,500 crore will likely be used to cut back the corporate’s debt, Rs 375 crore for buying land and land developmental rights, whereas the remainder will likely be saved apart for spending on basic company functions. That is the third time that the corporate has been making an attempt to get listed after withdrawing its prospectus in 2009 after which once more in 2018.
The 26-year-old Macrotech Builders is a serious participant within the residential actual property market with its enterprise primarily concentrated in and across the Mumbai metropolitan area. In 2019, it entered the logistics and industrial parks section as a developer, the corporate stated within the IPO paperwork. Axis Capital, JP Morgan and Kotak Funding Banking are among the many 10 service provider bankers managing the supply.

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