LAST UPDATED: April 10, 2021, 12:48 p.m.
New Delhi (Anish Yande): The initial public offering of Macrotech Developers has been fully subscribed on the final day of bidding. Macrotech Developers’ IPO amounts to Rs 2,500-crores. The real estate firm IPO received a strong response from investors.
Macrotech Developers IPO details:
On the final day of subscription, Friday at 5 PM, the issue was subscribed 1.37 times. The portion of the issue reserved for institutional investors subscribed 3.06 times. The reserved portion for the non-institutional investors was subscribed 1.45 times.
The issue reserved for qualified institutional investors comprised of 10.16 million shares on offer which received 22.99 million bids. The issue reserved for non-institutional investors has 7.62 million shares on offer which received 8.27 million bids.
The reserved portion for eligible employees received subscriptions of 0.17 times. Retail investors subscribed to the Macrotech Developers issue 0.40 times.
The price band of the Macrotech Developers issue was at Rs 483-486 per share. The offer for sale of the issue was at 5.14 crore equity shares against which the issue received bids amounting to 7.04 crore equity shares.
Macrotech Developers had a debt of Rs 18,662.20 crore as of December 2020. The real estate firm would be utilizing about 60% of proceeds from the IPO to reduce its debt.
Real estate firm to reduce debt through IPO proceeds:
The real estate firm would acquire development rights and purchase land amounting to Rs 375 crore using the proceeds. The rest of the proceeds would be used for general corporate purposes.
Ahead of the IPO, Macrotech Developers had raised Rs 740 crore from 14 anchor investors. The real estate firm allocated 1.52 crore shares at Rs 486 per share to the investors.
The book running lead managers to the issue are Axis Capital, JPMorgan, Kotak Investment Banking, ICICI Securities, JM Financial, and Yes Securities
As of December 2020, Macrotech Developers had 91 completed projects which comprised of approximately 77.22 mn sq. ft of developable area. The projects in the premium and luxury housing space comprised of 12.15 mn sq ft and projects in the office space comprised of 5.21 mn sq ft.
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