Macrotech

Developers Limited Created by :

IPO
G.Dinesh Reddy - 74052100346
Pakshal Sakariya - 74052100226
Damini Nandi - 74052100507
Harshit Mahajan - 74052100184
Vipasha Jain - 74052100319

December 5,2021
 About Macrotech
Incorporated in 1995, Macrotech Developers is the largest real estate
developer in India. The company is primarily engaged in affordable
residential real estate developments.
Competitive Strengths:
• Largest residential real estate developer in India.
• Strong sales distribution network across India as well as foreign markets
such as in GCC, UK, Singapore, and US.
• Brand equity and premium pricing.
• Strong project execution capabilities.
• Experienced management team.

Abhishek Mangal Prabhat Lodha, Rajendra Narpatmal Lodha, Sambhavnath

Infrabuild and Sambhavnath Trust are the company promoters.
Red herring prospect

Initial public offer of equity shares face value of ₹10 each of

Macrotech Developers Limited for cash (including a share premium)
aggregating up to ₹25,000 million.

The issue includes a reservation of equity shares aggregating up to

₹300 million, for subscription by eligible employees. The company in
consultation with managers, may offer a discount on the issue price to
eligible employees bidding in the employee reservation portion.
Objects of
the issue 01
Reduction of the aggregate outstanding borrowings
of the Company on a consolidated basis.
Usage of funds after IPO.

02 Acquisition of land or land development rights

03 General Corporate Purposes

 Macrotech Developers Ltd revenue growth is
lower than the industry revenue growth
Over the last 5 years, revenue has grown at a
yearly rate of -8.01%, vs industry avg of
-3.61%.

Macrotech Developers Ltd market share is

decreasing
Financial Reports Over the last 5 years, market share decreased
from 15.72% to 12.82%.

Macrotech Developers Ltd net income is lower

than the industry net income
Over the last 5 years, net income has grown
at a yearly rate of -43.59%, vs industry avg of
-7.61%.
IPO Allotment
Macrotech Developers Ltd’s, erstwhile Lodha Developers, ₹25,000 million IPO,
received a lukewarm response from investors, they finalised the basis of the
allotment of the IPO on Friday, April 16, 2021.
The company Made its stock market debut on April 22. The price range for the
offer was Rs 483-486 per share. On the last day of bidding, the reserved portion
of qualified institutional buyers (QIBs) was subscribed 3.05 times and that of
non-institutional investors subscribed 1.44 times. While the portion set aside
for retail individual investors saw a subscription of 40% and employees’ portion
17%.
 Broker’s
recommendation
Macrotech developers share price cannot be
validated whether issue price is under period
or over period due to negative EPS in FY21
Broker suggest not to invest in Macrotech
IPO.
 Resource
Page
https://www.sebi.gov.in/filings/public-
issues/feb-2021/macrotech-developers-
limited_49172.html (DRHP)

Investing.com Moneycontrol Tickertape

https://reports.chittorgarh.com/ipo_notes/Mac
rotech-Developers-IPO-Note-ICICI-Direct.pdf
(ICICI Direct’s IPO review)

http://www.cmlinks.com/pub/ba/bashow.asp?
code=35713 ( Basis of allotment)