Macrotech Developers receives SEBI approval for ₹2,500-crore IPO

Macrotech Developers (formerly Lodha Developers) has received a green flag from the market regulator for its proposed ₹2,500-crore Initial Public Offering (IPO). The company intends to roll out the offer by April 10. Moreover, the property developer would also plan to raise ₹500 crore through a pre-IPO placement.

“The company’s IPO plans are on track, with it getting SEBI approval today. The plan is to hit the market latest by April 10,” a source aware of the development revealed.

The real estate company had filed a Draft Red Herring Prospectus (DRHP) with SEBI on February 16 and was expecting to get all approvals soon. This is the third attempt by the company, which is the country’s biggest residential developer with sales and collection of ₹50,000 crore over the past seven years, to raise funds through an IPO.

When contacted, a company spokesperson refused to comment.
The company has persuaded as many as 10 companies as managers to the issue.

Axis Capital Ltd, JP Morgan India Private Ltd, and Kotak Mahindra Capital Company Ltd are the global Book Running Lead Managers to the issue. The issue will be managed by SBI Capital, ICICI Securities, JM Financial, Yes Securities, Edelweiss, IIFL Securities, and BoB Capital on the domestic front.

Macrotech Developers is planning to repay ₹1,500 crore of its entire debts and will utilize ₹375 crore for the acquisition of land and general corporate purposes.

Sources earlier revealed that the company was preparing to launch its IPO in April.

The company had initially filed a DRHP in September 2009 to raise around ₹2,800 crore and got approval from SEBI in January 2010. Later in April 2018, it filed another DRHP to launch a ₹5,500-crore IPO, for which it got approval from SEBI in July 2018. The company suspended these IPO plans on account of “unfavorable market conditions”.

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