Macrotech IPO sails through, retail investors give it a miss

Mumbai: The Rs 2,500-crore IPO of Macrotech Developers, formerly Lodha Developers, sailed through on Friday, the last day of bidding, thanks to appetite from instituions and rich individuals. The issue was subscribed 1.37 times with many retail investors giving it a miss. This is the first among the 17 IPOs of 2021 where the retail portion was undersubscribed.

The offer attracted bids for 4.95 crore shares against the issue size of 3.62 crore shares. The institutional portion was subscribed 3.06 times and high networth Investors bid for 1.45 times the shares set aside for them. Only 40 per cent of the retail portion was subscribed.

“Expectation of limited listing gains could be the reason for such a poor response from the retail investors,” said Yash Gupta, analyst, Angel Broking. “The company has a strong brand in affordable and mid income housing projects but is not able to deliver growth in sales and free cash flow in the last couple of years.”


The Macrotech issue was sold in the price band of Rs 483-486 apiece. At the upper end of the price band, the company is valued at Rs 21,675 crore, which will make it the third biggest realty company in market value after DLF and Godrej Properties.