Shares of Macrotech Developers Ltd. (erstwhile Lodha Developers Ltd.) fell on market debut after its third attempt to an initial public offering failed to enthuse investors.
The stock listed at Rs 439 apiece, a 9.67% discount to its issue price of Rs 486, according to data available on the bourses. The stock fell to as low as Rs 421.15 in early hours of trading on Monday.
The Rs 2,500-crore IPO of the Mumbai-based real estate developer received bids for 7.04 crore equity shares against an offer of 5.14 crore. Demand from qualified institutional buyers and non-institutional investors helped the maiden offer subscribe 1.37 times, the least so far in 2021.
The portion reserved for retail investors was subscribed 0.40 times, while that of qualified institutional buyers 3.06 times. Non-institutional investors bid 1.45 times for the shares on offer and the employees’ portion was booked 0.17 times.
Before the IPO, the company had raised Rs 740 crore from 14 anchor investors, allocating 1.52 crore shares at Rs 486 apiece.
Of the proceeds from the IPO, the company plans to repay debt worth Rs 1,500 crore and acquire land and development rights worth Rs 375 crore, while deploying the rest for general corporate purposes.
The developer also faced the brunt of the Covid-19 pandemic, with its impact leading to sales and gross collections from residential projects declining to Rs 3,145 crore and Rs 2,686 crore in the nine months ended December from Rs 4,184 crore and Rs 5,049 crore a year earlier.
The company also reported a loss of Rs 270 crore in the same period. The company hasn’t declared any dividend in the last four financial years.
The stock is currently trading at Rs 466, down 4.12%.
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