InvestorQ : Why did the Macrotech IPO get such a tepid response in the market?
Arti Chavan made post

Why did the Macrotech IPO get such a tepid response in the market?

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Rutuja Nigam answered.
4 weeks ago
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Macrotech Developers IPO, which closed for subscription on Friday 09 April, was subscribed 1.36 times on the third and final day of the issue. Macrotech was formerly known as Lodha Developers and is owned by Mangal Prabhat Lodha who is a prominent BJP politician. The retail portion of the IPO was subscribed just 0.40 times while the NII portion was subscribed 1.44 times and the QIB portion was subscribed 3.05 times.

Macrotech Developers planned to raise Rs.2,500 crore through the IPO. Macrotech is the largest real estate developer in the country with a history of over 25 years. The company operates in the mid and low-cost housing space with a small part of its business reserved for premium segment and industrial parks. However, it looks like retail investors were worried about the rich valuations and also the high levels of debt in the books of Macrotech.

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