The initial public offering of Macrotech Developers Ltd, formerly known as Lodha Developers, will open on 7 April and close on 9 April. The issue price has been fixed at Rs 483- Rs 486 per share. The firm will raise Rs 2500 crore via the IPO. The company proposes to utilize an estimated Rs 1,500 crore from the net proceeds for prepayment, repayment, or redemption of all or a portion of borrowings availed by the company and some of its subsidiaries.
As of December, consolidated aggregate outstanding borrowings of the company stood at Rs 18,662.19 crore.
“(This) will help reduce our outstanding indebtedness, assist us in maintaining a favorable debt-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 the future to fund potential business development opportunities and plans to grow and 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 Rs 375 crore with part of the proceeds of the issue.
As of December, the company had 91 completed projects comprising 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 in office space, and 0.74 million square feet in retail space. It has 36 ongoing projects comprising approximately 28.78 million square feet of developable area.
The company reported a total income of Rs 3,160.49 crore for the period ended December compared with Rs 9,357.35 crore a year ago. Net loss stood at Rs 264.30 crore compared to a profit of Rs 503.08 crore.