Macrotech Developers shares list at 10% discount to issue price

NEW DELHI: Macrotech Developers (erstwhile Lodha Developers) made a weak debut on Monday, as the scrip got listed at Rs 439 on BSE, a 9.67 per cent discount to its issue price of Rs 486 per share.

On NSE, the stock debuted at Rs 436, down 10.29 per cent compared with the issue price.

Analysts said the ongoing spike in coronavirus cases and the recent decision by the Maharashtra government to discontinue a stamp duty waiver on property registrations hurt Macrotech's listing prospects.

Maharashtra on Sunday reported a record 68,631 new Covid cases. An ET report suggested that the state could be heading for a full lockdown where even essential services could be curtailed. A Mumbai-based developer, Macrotech has a market share of more than 10 per cent in the micro markets of Mumbai Metropolitan Region (MMR), according to Angel Broking.

The residential real estate developer focuses on affordable and mid-income housing. It also develops commercial real estate as part of mixed-use developments in and around its core residential projects.

The IPO by the realty major, shares under which were available for bidding from April 7 to April 9, was subscribed just 1.36 times. The Rs 2,500-crore issue attracted bids for 4,94,64,480 shares as against 3,64,18,219 shares on offer.

The portion reserved for qualified institutional buyers (QIBs) was subscribed 3.05 times, whereas the quotas for non-institutional investors and retail individual investors (RIIs) saw subscription of 1.44 times and 40 per cent, respectively.

In 2019, the company forayed into the development of logistics and industrial parks, and entered into a joint venture with ESR Mumbai 3 Pte, a subsidiary of Asia Pacific-focused logistics real estate platform ESR Cayman.

Analysts said the company has a net debt of Rs 16,700 crore as of December 31 and any downturn in the realty sector may affect it significantly.