India: Macrotech Developers IPO subscribed 26% on first day of issue

The 2500 crore initial public offer of Macrotech Developers was subscribed 26% on the first day of the issue.

Macrotech Developers received 9.59 million bids for 36.42 million shares on offer. Qualified institutional buyers portion was subscribed 58% and non-institutional investors portion was subscribed 11%. Retail investors and employees portion was subscribed 15% and 1% respectively.

On Tuesday, Macrotech Developers raised 740 crore from 14 anchor investors.

Analysts at Reliance Securities in an IPO note said “Macrotech Developers Ltd’s IPO is valued at 26.3 times FY20 earnings and 4.8 times of FY20 book value, which appear to be reasonably priced vis-à-vis its peers like Godrej Properties and DLF. The company plan is to reduce net debt to 12700 crore in the coming quarters negates concern over high leveraging. Further, strong project portfolio and monetization of huge land banks offer comfort. Moreover, its return ratio looks to be superior compared to peers”. Hence, we recommend ‘Subscribe’ to the issue.

The IPO is a fresh issuance of equity shares of 10 face value aggregating up to Rs. 2500 crore. The price band has been fixed at Rs. 483 – Rs. 486 per Equity Share.

The company plans to use the IPO proceeds to pare its debt obligations and buy land for future growth.

The Macrotech IPO will be the largest property public issue after DLF, which went public in the year 2007. Its listed peers include DLF, Godrej Properties, Oberoi Realty, Sobha and Sunteck Realty.

Macrotech is primarily engaged in affordable residential real estate developments and in 2019, it entered into the development of logistics, industrial parks and commercial real estate. It is also known for luxury projects such as Trump Towers in Mumbai and Grosvenor Square in London.

This article was first published on livemint.com.

Singapore Reporter/s

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

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

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  • 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. 
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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.