MACROTECH DEVELOPERS LIMITED IPO (LODHA DEVELOPERS)
Incorporated as Lodha Developers in 1995, Macrotech developers is the largest real estate developer in India in terms of residential sales value for FY 2014 to FY 2020. Its core business is in residential real estate developments along with a focus on affordable & mid-income housing. In 2019, the company entered into the development of logistics, industrial parks, and in a Joint venture with ESR Mumbai 3 Pte. Limited, the subsidiary of ESR Cayman Ltd., an Asia-pacific focused real estate platform.
As of 31st December 2020, it has completed 91 projects which comprise 7.72 crores square feet of developable area out of which 5.91 crores of square feet are in affordable & mid-income housing, 1.21 crores of square feet is in premium & luxury housing, 52.1 lakhs square feet is in office space and 7.4 lakhs square feet is in retail space.
Its ongoing portfolio of affordable & mid-income housing project includes Palava (Navi Mumbai, Dombivali Region), Amara (Thane), Upper Thane (Thane outskirts), Lodha Sterling (Thane), Crown Thane (Thane), Lodha Luxuria (Thane), Lodha Splendora (Thane), Lodha Belmondo (Pune), and Casa Maxima (Mira Road), and Bel-Air (Jogeshwari). Its affordable & mid-income housing developments accounted for sales of ₹ 1,817.2 crores and ₹ 3,055.3 crores during the nine months period ended 31st December 2020 and the FY 2020. It constituted 57.78% and 57.77% of the total residential Sales, respectively.
The promoters of the company are Mr. Abhishek Mangal Prabhat Lodha, Mr. Rajendra Narpatmal Lodha, Sambhavnath Infrabuild, and Sambhavnath Trust.
Strengths of the company:
- Largest residential real estate developer in India and has a leadership position in the MMR market.
- It is a well-established brand and has the ability to sell at premium pricing.
- Continuous innovation along with proven end-to-end execution capabilities.
- It has the ability to deliver projects at a competitive cost.
- The company has a highly diversified portfolio with a focus on mid-income and affordable housing.
- It has a significant inventory of ready-to-move units and completed projects.
- Lodha Developers has a unique ability to generate annuity-like cash flows from developed townships.
- It has innovative sales & marketing strategies.
- The company has an experienced and high-quality management team.
Purpose of the IPO:
- To make repayments of all or some portion of its aggregate outstanding borrowings of the company on a consolidated basis.
- For the acquisition of land or the land development rights.
- To meet the general corporate purposes.
Financial Performance of the company:
| For the nine-month period ended 31st December 2020 | FY 2020 | FY 2019 | FY 2018 | |
| Total Revenue | 3,160.48 | 12,560.98 | 11,978.86 | 13,726.56 |
| Total Expenses | 3,218.82 | 11,560.23 | 9,489.98 | 11,017.03 |
| Profit After Tax | -264.30 | 744.83 | 1,643.97 | 1,789.39 |
| Total Assets | 40,594.61 | 40,692.55 | 49,863.94 | 47,811.27 |
*All the values are in crores and as per RHP.
Valuation of the Company:
| For the nine-month period ended 31st December 2020 | FY 2020 | FY 2019 | FY 2018 | |
| Basic Earnings per Share (EPS) | -6.83 | 18.46 | 41.33 | 45.10 |
| Diluted Earnings per Share (EPS) | -6.83 | 18.46 | 41.33 | 45.10 |
| Return on Net Worth (%) | -7.0% | 17.8% | 48.3% | 101.1% |
| Net Assets Value per Equity share | 97.03 | 103.86 | 85.64 | 44.59 |
*As per RHP.
Macrotech Developers (Lodha Developers) IPO DRHP
IPO details:
| Face Value | ₹10 per equity share |
| Market Lot | 30 Shares |
| Minimum Order Quantity | 30 Shares |
| Price Band | ₹483 - ₹486 per equity share |
| Issue type | Book Built Issue IPO |
| Issue Size | ₹2,500 Crores |
| Fresh Issue | ₹2,500 Crores |
| Offer for Sale | - |
| Listing | NSE, BSE |
Important IPO dates:
| Open Date | 7th April 2021 |
| Close Date | 9th April 2021 |
| Basis of Allotment Date | 16th April 2021 |
| Initiation of Refunds | 19th April 2021 |
| The credit of shares to Demat Account | 20th April 2021 |
| Listing Date | 22nd April 2021 |
Allocation Quota:
| Category | Portion |
| Qualified Institutional Buyers (QIBs) | Not more than 50% |
| Non- Institutional Buyers (NIIs) | Not less than 15% |
| Retail Investors | Not less than 35% |
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