Macrotech Developers lists at discount of over 10%, disappoints retail Investors

Macrotech Developers IPO got listed on the stock exchanges at Rs 436 per share against the issue price of Rs 489 per share. The stock price made a low of Rs 422.6. The market cap of the company is over Rs 21000 cr. Macrotech Developers share price today is Rs 472, down Rs 13.5 or 2.8%. The stock recovered over Rs 50 or 12% from day's low. Retail investors who got the allotment are disappointed due to the weak listing.

Zee Business Managing Editor Anil Singhvi said that Macrotech Developers received muted response from investors as the IPO was priced on a higher side, leaving no listing gains for the Investors.

See Zee Business Live TV Streaming Below:

Singhvi had said that Macrotech Developers is available at 15% to 20% below the issue price due to weakness in markets. Then Investors should invest as it becomes attractive for Investment. The stock price had reversed all losses as Investors found valuations attractive at lower levels and hence the stock did bounce back as Singhvi indicated in the morning.

Saurabh Joshi - Research Analyst from Marwadi Shares and Finance said that they have issued a Not Rated IPO note on Macrotech Developers and as expected the IPO opened at discount to the issue price. The company has a substantial amount of debt and contingent liabilities and the impact of covid on the business is still uncertain. Moreover, the company is hugely focused on the MMR region which is worst affected by the covid, hence they advise the investors of this IPO to exit in case of any bounceback in the share price.
 
Macrotech Developers was incorporated as ‘Lodha Developers Private Limited’ on September 25, 1995. Macrotech Developers is the largest real estate developer in India, by residential Sales value for the financial years 2014 to 2020. Their core business is residential real estate developments with a focus on affordable and mid-income housing. Currently, they have residential projects in the Mumbai Metropolitan Region (“MMR”) and Pune. In 2019, they forayed into the development of logistics and industrial parks and entered into a joint venture with ESR Mumbai 3 Pte. Ltd (“ESR”), a subsidiary of ESR Cayman Ltd., an Asia Pacific focused logistics real estate platform.

Macrotech Developers has a strong presence in the Extended Western Suburb micro-market of the MMR, with the 2nd largest share of absorption (by value) and the 5th largest share of supply (of units) of residential developments, among the 5 largest developers in the respective micromarket, from 2015 to 2020