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The initial public offering (IPO) of Macrotech Developers (erstwhile Lodha Developers) will open for subscription tomorrow and will be available for subscription till Friday, April 9, 2021. The IPO has a price band of Rs 483-486 per share and it will be the first offering in the new financial year 2021-22 (FY22).This is the third attempt by the Mumbai-based realty major to launch its IPO after the previous plans in 2009 and 2018 had failed due to unfavourable market conditions. The company was founded in 1995 by Mangal Prabhat Lodha. The real estate developer will raise Rs 2,500 crore through the fresh issuance of shares. On Monday it said that it will reduce net debt by 24 per cent to Rs 12,700 crore post its IPO.The proceeds of the issue will be utilised to reduce the aggregate outstanding borrowings on a consolidated basis, acquire land or land development rights and for general corporate purposes, according to the details given on the red herring prospectus available on the National Stock Exchange (NSE).Macrotech Developers has a strong presence in affordable and mid-income housing across Mumbai Metropolitan Region (MMR) and Pune. It has also built the Trump Tower in Mumbai.Macrotech’s revenue from operations stood at Rs 12,442.6 crore in the financial year 2019-20 (FY20). In the first nine months of the last fiscal, its revenue stood at Rs 2,915 crore. The company posted a profit of Rs 744.84 crore in FY20 but has suffered a loss of Rs 264.3 crore in the April-December period of FY21 due to the COVID-19 pandemic, according to the red herring prospectus.Investors who wish to subscribe to Macrotech Developers IPO can bid in the lot of 30 equity shares and multiples thereof. At the upper price band, they will have to shell out Rs 14,580 to get a single lot of Macrotech Developers. The shares will be listed on both BSE and NSE.As of December 31, 2020, Macrotech has 91 completed projects comprising approximately 77.22 million square feet of developable area.
