Macrotech Developers (Lodha Developers) IPO Review 2021: The Macrotech Developers IPO opens on 7th April and closes on 9th April 2021. In this article, we cover the Macrotech Developers (Lodha Developers) IPO review and look into important IPO information and find out the possible prospects of the company.
Table of Contents
Lodha Developers IPO Review – About the Company
The Lodha Group was founded in 1980 and incorporated in 1995 by Mangal Prabhat Lodha as a real estate developer based in Mumbai. The company mainly focused on developing residential projects for affordable and mid-income. Its projects however were mainly concentrated in the Mumbai Metropolitan Area (MMA).
As the company kept growing they also took up projects in Pune and Hyderabad. The company also ventured into luxury housing and was well known for providing world-class standards. Their luxury projects include the Trump Towers in Mumbai.
In 2010, they set a record for India’s biggest land deal when they bought a plot from the Mumbai Metropolitan Region Development Authority for Rs. 4,053 crores. The area is currently being developed as New Cuffe Parade.
They also went global when they entered the UK market in 2013 with an investment of 400 million pounds. They have developed the Lincoln Square project and the Grosvenor Square located in Mayfair.
Lodha – India’s largest Real Estate Developer
By 2014 they were already India’s largest real estate developer by residential sales value. They continue to be at the top to date. The flats offered by them are priced in the range of 35 Lacs to 59 Cr.
Their properties are sold under various brands. These include CASA, Crown – Lodha Quality Homes for affordable and mid-income housing projects. Lodha Luxury for luxury housing projects. However, it is the affordable and mid-income housing projects which accounted for 57.77% of their revenue in 2020.
Much of their success is owed to their strong sales network. They are spread out across India and also in GCC countries, UK, Singapore, and the US. This is done to gain access to the NRI customers.
The company is currently implementing its plans to enter the development of logistics, industrial parks, and commercial real estate. Its logistics and industrial parks are currently being developed in Pallava over 800 acres of land.
Its commercial real estate projects include corporate offices, IT campuses, and boutique office spaces. These are sold under their brand names ‘iThink’, ‘Lodha Excelus’ and ‘Lodha Supremus’.
Lodha Developers IPO Review – Key IPO Information
The promoters of the company are Mangal Prabhat Lodha, Abhishek Mangal Prabhat Lodha, Rajendra Narpatmal Lodha, Sambhavnath Infrabuild, and the Sambhavnath Trust. Its founder Mr. Mangal Prabhat Lodha has played an important role in Lodha’s success so far. He has also served as the Member of the Legislative Assembly in Mumbai for five consecutive terms.
They have appointed Axis Capital, JP Morgan India, Kotak Mahindra Capital Company, ICICI Securities, Edelweiss Financial Services, IIFL Securities, JM Financial, YES Securities (India), SBI Capital Markets, and BOB Capital Markets as the book running lead managers to the issue.
Link Intime India Pvt. Ltd. has been appointed as the registrar to the issue.
| Particular | Details |
|---|---|
| IPO Size | ₹2,500.00 Cr |
| Fresh Issue | ₹2,500.00 Cr |
| Offer For Sale(OFS) | --- |
| Opening Date | Apr 7, 2021 |
| Closing Date | Apr 9, 2021 |
| Face Value | ₹10 per equity share |
| Price Band | ₹483 to ₹486 |
| Lot Size | 30 Shares |
| Minimum Lot | 1 |
| Maximum Lots | 13 |
| Listing Date | Apr 22, 2021 |
It is also important to note that this is the third time Macrotech has attempted to float its IPO. Lodha Group earlier tried to list in 2009 and 2018 but backed out citing unfavorable market conditions for the realty sector.
Purpose of the Lodha Developers IPO
The real estate firm plans to raise money for the following purposes;
- Reduce outstanding borrowings of the company on a consolidated basis. Rs 1500 cr.
- Acquire land or land development rights. Rs 375 cr.
- Meet general corporate purposes
Lodha Developers IPO Review – Grey Market Information
The shares of Macrotech Developers traded at Rs 506-511 as of 4th April 2021. This shows a premium of Rs 20-25 i.e. 4-5% over their IPO price band.
Macrotech Developers (Lodha Developers) IPO Review – Competitors
Their competitors include real estate developers such as:
- Godrej Properties Limited
- Oberoi Realty Private Limited
- DLF Limited
- Prestige Estates Projects Limited
- Wadhwa Group Holdings Private Limited
- Dosti Realty Limited
- K Raheja Corp Private Limited
- Hiranandani Developers Private Limited
- Indiabulls Real Estate Limited
- L&T Realty Limited
- Rustomjee Builders Private Limited
- Kalpatru Limited
- Tata Housing Development Company Limited.
In Closing
The IPO opens on 7th April and closes on 9th April 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of Macrotech Developers.
That’s all for this post. Do let us know what you think of the Macrotech Developers (Lodha Developers) IPO review. Are you planning to apply for this IPO or not? Comment below. Cheers!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
