Macrotech Developers Limited IPO

Macrotech Developers IPO
  • Macrotech Developers Limited is one of the largest real estate developers in India by residential sales value for the past few years
  • The company’s brands include “Lodha”, “CASA by Lodha”, and “Crown – Lodha Quality Homes” for affordable and mid-income housing projects. The “Lodha” and “Lodha Luxury” brands are for premium and luxury housing projects
  • Lodha’s core business is residential real estate developments with a focus on affordable and mid-income housing
  • In 2019, Lodha forayed into the development of logistics and industrial parks and entered into a joint venture with ESR Mumbai
  • The company also develops commercial real estate in and around the core residential projects
  • Macrotech Developers has completed 91 projects comprising 77.22 million square feet of Developable area as of December 31, 2020. Out of this, 59.13 million is in affordable and mid-income housing, 12.15 million in premium and luxury housing, 5.21 million is in office space and 0.74 million retail space. 

Macrotech Developers Limited IPO opens for subscription between April 7 to April 9, 2021. The company operates in the real estate sector, which is going through its own set of challenges. Declining margins and thereby stressed financials and on-ground execution challenges indicate risk.

About the business

Macrotech Developers engages itself into a customer-centric model that focuses on designing and developing the “branded products”. These products address customer needs across locations and price points. The company’s core competence is to professionally manage the real estate value chain to deliver a project from conceptualization to completion.

The in-house sales team finds support from the distribution network of multiple channels across India and key non-resident Indian markets. These include the Gulf Cooperation Council, United Kingdom, Singapore and the United States.

The company commenced operations in Mumbai and expanded to the suburbs of Mumbai. Later the company diversified into other segments and regions in the Mumbai Metropolitan Region (MMR) and Pune.

Table below sets forth the details of ongoing and planned projects:

Macrotech Developers - ongoing and planned projects
*Mn Sq. ft is the Saleable Area

About the promoters of Macrotech Developers

The Lodha group has been in the real estate business since 1986. Mr Abhishek M. Lodha, Managing Director and Chief Executive Officer, leads the company.

Financial Profile

Below is the condensed financial information of Macrotech Developers.

Amounts in Rs Cr excluding per share dataMacrotech Developers - condensed financials

  • There are several industry group peers, and the average P/E is 42.1x

Comparison with other industry peers

Macrotech Developers - peer comparison

Offer proceeds

Particulars Amount
Gross proceeds of the issue Rs 2,500 Cr
Issue related expenses To be ascertained
Net issue size

Utilization of proceeds:

  • Reduction of the aggregate outstanding borrowings (Rs 1,500 Cr)
  • Acquisition of land and land development rights (Rs 375 Cr)
  • General corporate expenses

IPO Factsheet

Macrotech Developers - IPO factsheet

The information provided in the red herring prospectus filed by the company with the Securities and Exchange Board of India ( is the basis for this note. However, I recommend that the reader validate the data before making any financial decision. Also, investment in an initial public offering (IPO) is subject to market risks. It should be evaluated, keeping your risk profile and investment objective in mind. The author will not be responsible for any financial loss or otherwise resulting from any action taken based on the above.

The author is a senior finance professional with over fifteen years of work experience in corporate finance and has an affinity for personal finance and investment management. Please leave your comment or share thoughts on this article via email at For more articles, please visit the website


The author has used his knowledge, experience, and understanding of the subject to write this article. Any views, opinions, and thoughts mentioned in the article belong solely to the author and not necessarily to the author’s employer (past or current), organization, committee, or other group or individual.

Under no circumstances shall the author be liable for any views or analysis expressed in this note. Further, the opinions expressed are not binding on any authority or Court. We advise readers to consult their financial advisor for assistance in their specific case.

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *