India realty firm Macrotech Developers looks to raise $343m in third IPO attempt

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Macrotech Developers Ltd, formerly known as Lodha Developers, filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India to raise Rs2,500 crore via an initial public offering (IPO).

The company proposes to utilise an estimated Rs1,500 crore from the net proceeds towards prepayment, repayment, or redemption of all or a portion of certain borrowings of the company and its subsidiaries.

As of December 2020, the aggregate outstanding borrowings of the company, on a consolidated basis, was Rs18,662.19 crore.

“(This) will help reduce our outstanding indebtedness, assist us in maintaining a favourable debt-equity ratio, and enable utilisation of some additional amount from our internal accruals for further investment in business growth and expansion. In addition, we believe that as 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 expand our business in the future,” the company said in its DRHP.

The company also intends to acquire land or land development rights primarily in the Mumbai metropolitan region and Pune worth Rs375 crore from part of the proceeds of the issue.

As of December 2020, the company has 91 completed projects of approximately 77.22 million square feet of developable area, of which 59.13 million square feet is in affordable and mid-income housing, 12.15 million square feet is in premium and luxury housing, 5.21 million square feet is in office space, and 0.74 million square feet is in retail space. It also has 36 ongoing projects of approximately 28.78 million square feet of developable area.

For the period ended December 2020, it’s total income was Rs3,160.49 crore versus Rs9,357.35 crore a year ago. Net loss for the period stood at Rs264.30 crore from a profit of Rs503.08 crore last year in the same period. Adjusted earnings before interest, tax, depriciation, and amortization (Ebitda) was Rs767.50 crore against Rs2,414.27 crore last year in the same period. Ebitda margin fell to 26.30% from 32.4% a year ago.

This would be the developer’s third attempt at an IPO. It filed its first share sale documents in September 2009 to raise around 2,800 crore but shelved its plan in the aftermath of the 2008 global crisis. Lodha later revived its plan to do a public listing in 2018 to raise around Rs5,500 crore after receiving the market regulator’s approval but withdrew it after a liquidity crisis hit the real estate sector.

The 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.