India: Macrotech Developers to launch IPO on 7 April

Macrotech Developers Ltd, formerly known as Lodha Developers, will launch its initial public offering (IPO) on 7 April, according to two people familiar with the plan.

The share sale has received final approval from the markets regulator and the company filed its red herring prospectus with the registrar of companies on Wednesday, the people said seeking anonymity.

The real estate developer plans to raise 2,500 crore by selling new shares, according to its draft IPO documents filed last month.

The company hasn’t raised any pre-IPO funding, even though its draft prospectus included a provision to raise as much as 500 crore through this route, one of the two people said. This is the company’s third attempt to go public.

It filed its first share sale document in September 2009 to raise around 2,800 crore but shelved the plan as the markets crashed in the aftermath of the global financial crisis that began in 2008. In 2018, it filed for an IPO for a second time, aiming to raise around 5,500 crore but had to abandon the plan following the crisis that engulfed shadow banks in the wake of payment defaults by Infrastructure Leasing and Financial Services Ltd.

An email sent to a spokesperson for Macrotech did not elicit a response.

Macrotech proposes to utilize an estimated 1,500 crore from the proceeds for prepayment, repayment or redemption of all or a portion of the debt of the company and some of its subsidiaries.

As of December, consolidated aggregate outstanding borrowings of the company stood at 18,662.19 crore.

“(This) will help reduce our outstanding indebtedness, assist us in maintaining a favourable debt-to-equity ratio and enable utilization of some additional amount from our internal accruals for further investment in business growth and expansion. In addition, we believe that since our debt-equity ratio will improve significantly, it will enable us to raise further resources at competitive rates in future to fund potential business development opportunities and plans to grow and expand our business,” the company said in its draft IPO document.

As of December, the company had 91 completed projects comprising approximately 77.22 million sq. ft of area, of which 59.13 million sq. ft is in affordable and mid-income housing, 12.15 million sq. ft in premium and luxury housing, 5.21 million sq. ft in office space, and 740,000 sq. ft in retail. It has 36 ongoing projects, comprising approximately 28.78 million sq. ft of area.

This article was first published on livemint.com.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.