Several global and domestic financial institutions are looking to sign up as anchor investors in Macrotech Developers Ltd’s initial public offering (IPO), multiple people familiar with the development said.
The Mumbai-based firm, formerly called Lodha Developers, launches its ₹2,500 crore share sale on April 7. Canadian alternative investment major Brookfield Asset Management Inc., US-based private investment management firm Wellington Management Co., Abu Dhabi Investment Authority (ADIA), Ivanhoe Cambridge and HDFC Mutual Fund are likely to be among the anchor investors, the people cited above said.
“For a Mumbai-based, residential-focused IPO like Macrotech to generate so much interest from long-term, global investors is surprising and a significant vote of confidence. Given the kind of commitments that are expected to come in from investors, Macrotech could attract a valuation of around ₹19,000 crore,” the person mentioned above said on condition of anonymity.
Anchor investors are allowed to buy up to 30% of an IPO, and will be invited to buy shares on April 6, a day before the public share sale opens.
A spokesperson for Macrotech didn’t respond to queries.
This is the third attempt by Macrotech, India’s largest builder by sales, to launch an IPO, after adverse market conditions forced it to delay its plans in 2009 and 2018. It plans to utilise the net proceeds from the fresh issue towards debt reduction of up to ₹1,500 crore, acquisition of land or land developmental rights aggregating up to ₹375 crore and for general corporate purposes.
India’s residential sector, which has seen a slowdown for years now, was further disrupted by the pandemic. However, in recent months, home sales have seen a comeback in large cities, particularly in Mumbai Metropolitan Region, which is Macrotech’s core area of operations.