Lodha Developers, which is now known as Macrotech Developers Ltd, has filed a draft red herring prospectus (DRHP) with the market regulator to raise Rs 2,500 crore through an initial public offering (IPO).
The prospectus was filed on Wednesday, as per the Securities and Exchange Board of India (SEBI) website.
The proceeds from the fundraise will be used for reduction of outstanding borrowings, acquisition of land or land development rights and general corporate purposes.
Macrotech Developers’ primary business is residential real estate developments with a focus on affordable and mid-income housing. Its current projects are spread across MMR and Pune.
In 2019, it forayed into the development of logistics and industrial parks by entering into a joint venture with a subsidiary of Asia Pacific-focused ESR Cayman.
The company also develops commercial real estate including mixed-use projects in and around residential ones.
Macrotech Developers has been involved in the real estate business since 1986. It commenced operations in Mumbai, developing affordable housing projects and later diversified into other segments and regions in MMR and Pune.
As of December 31, 2020, the firm has 91 completed projects of around 77.22 million square feet. It has 36 ongoing projects of 28.78 million square feet.
This is the third attempt by the company to list its shares through an initial public offering (IPO). Lodha had received SEBI approval for an IPO in 2010 but it aborted the plan.
Again, in 2018, it received a nod to float but faced regulatory hurdles.
The proposed IPO will be a significant development for the Indian real estate industry. This will be the first real estate IPO in India after a gap of almost 10 years.
To be sure, the ecosystem has seen a bunch of listings on the real estate investment trust (REIT) front.
