Macrotech Developers IPO: Company's management says focus will be on affordable housing, money will be used to cut debt

Macrotech Developers IPO is all set to open tomorrow, April 07, 2021. This IPO comes in a price band of Rs 483 to Rs 486, offers a lot size of 30 shares and will be available for subscription till April 9, said Zee Business Managing Editor Anil Singhvi, about this upcoming Initial Public Offer (IPO).

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Talking about the company, the Market Guru said the company was incorporated in 1995 and was earlier known as Lodha Developers. "From residential sales point of view, this company is the country's biggest real estate development company currently. It deals in the affordable, premium and luxury house business. It also entered into the business of logistics and industrial parks since 2019, besides it is also in commercial real estate business," he said.

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"We have been the biggest real estate company in the country for a long time now.  We believe that in years to come there will be a very big housing boom in the country. Since the company is now going public, we want that our growth prospects increase and our investors also become part of this success story. 56% of supply and 62 % of sales come from affordable and mid-income housing and this will only increase in future," said Abhishek Lodha, MD and CEO, Macrotech Developers today in a chat with Anil Singhvi.

Talking about declining financials of the company, CFO Sushil Modi said that sales is an important indicator that tells you which way the company is going, but unfortunately, sales figure is not immediately incorporated in financials. "In real estate industry, as per accounting standards, recognition of revenue is done on the completion of a project. This is why revenue and profit figures are not looking up to the mark. One should rather give more importance to sales numbers and ours are on a growth trajectory, " said Macrotech Developers CFO.  

"Of the total Rs 2500 crore, we will use Rs 375 crore for growth capital, new projects, JDA and purchase purposes. Besides, we will use Rs 1500 crore for reducing debt and remaining amount will be used for general corporate purposes," said Lodha.