_1617259799177_1618807665778.jpg "Macrotech expects to utilise about 60% of the IPO proceeds to trim its debt.")
PremiumMumbai: Macrotech Developers Ltd, earlier known as Lodha Developers, made a weak debut on the stock exchanges on Monday, listing at a nearly 10% discount to the issue price. Its initial public offering was subscribed 1.4 times last week supported by robust response from foreign investors.
The stock opened at ₹439 on the BSE and fell as much as 9.7% from its issue price of ₹486. It touched a high and a low of ₹463.70 and ₹421.15, respectively. The scrip was currently at ₹467.75
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Premium Foreign investors were the biggest contributors to this IPO. FIIs had subscribed nearly 95% of its anchor book and accounted for 53% of the total bids in the IPO book holding. FIIs bid for 84% of the total bids from qualified institutional investors.
The institutional investor category of 10.23 million shares was subscribed 3.06 times. The non-institutional category, comprising high net-worth individuals, was subscribed 1.45 times.
The IPO was valued at 26.3 times of FY20 earnings and 4.8 times of FY20 book value, which, analysts believe, appear to be reasonably priced vis-à-vis its peers like Godrej Properties and DLF.
The company had a debt of ₹18,662.20 crore as of December. It expects to utilise about 60% of the IPO proceeds to trim its debt.
“Its plan to reduce net debt to ₹12700 crore in the coming quarters negates concern over high leverage. Further, strong project portfolio and monetization of huge land banks offer comfort," according to the Reliance Securities report.
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