LODHA DEVELOPERS IPO – Building a Better Life

LODHA DEVELOPERS IPO – Building a Better Life

ABOUT THE COMPANY

Macrotech Developers is the largest real estate developer in India, by residential Sales value for the financial years 2014 to 2020.

Company’s core business is residential real estate developments with a focus on affordable and mid-income housing and currently have residential projects in the MMR (Mumbai Metropolitan Region) and Pune.

Company also develops commercial real estate, including as part of mixed-use developments in and around our core residential projects.

Company’s core competency lies in professionally managing the real estate value chain as we have in-house capabilities to deliver a project from conceptualization to completion.

Company’s Background:

Lodha group has been involved in the real estate business since 1986. Further, Company is led by Abhishek M. Lodha, Managing Director and Chief Executive Officer.

Company has a leadership team of experienced professionals, with relevant functional expertise across different industries, who are instrumental in implementing the business strategies.

Company commenced operations in Mumbai, developing affordable housing projects in the suburbs of Mumbai, and later diversified into other segments and regions in the MMR and Pune.

Company’s Brands:

Company’s brands include “Lodha”, “CASA by Lodha” and “Crown – Lodha Quality Homes” for our affordable and mid-income housing projects. The “Lodha” and “Lodha Luxury” brands for premium and luxury housing projects, and the “iThink”, “Lodha Excelus” and “Lodha Supremus” brands for office spaces.

Company’s Sales Network:

Company’s inhouse sales team is supported by a distribution network of multiple channels across India as well as key non-resident Indian (“NRI”) markets, such as the Gulf Cooperation Council, United Kingdom, Singapore and the United States.

Company’s Ongoing Projects:

Company’s large ongoing portfolio of affordable and mid-income housing projects include Palava (Navi Mumbai, Dombivali Region), Upper Thane (Thane outskirts), Amara (Thane), Lodha Sterling (Thane), Lodha Luxuria (Thane), Crown Thane (Thane), Bel Air (Jogeshwari), Lodha Belmondo (Pune), Lodha Splendora (Thane) and Casa Maxima (Mira Road).

The affordable and mid-income housing developments accounted for Sales of Rs.3055 crores during the financial year 2020, and constituted 57.77% of our total residential Sales.

Company’s Land Reserves:

Company has land reserves of approximately 3,803 acres for future development in the MMR, with the potential to develop approximately 322 million square feet of Developable Area.

Company’s Real Estate Projects in London:

Company has invested in two real estate projects in London, namely Lincoln Square in the West End and No. 1 Grosvenor Square in Mayfair.

Both these projects are now complete, and the net proceeds after repaying the indebtedness is intended to be repatriated to the Company.

Management Team:

1. Mr. Mukund Manohar Chitale (Designation: Independent Director and Chairman)

2. Mr. Abhishek Mangal Prabhat Lodha (Designation: Managing Director and Chief Executive Officer)

3. Mr. Rajendra Narpatmal Lodha (Designation: Whole-Time Director)

OBJECTIVES OF THE ISSUE:

Fresh Issue: (Rs. 2500 cr)

• Reduction of the aggregate outstanding borrowings of the Company on a consolidated basis.
• Acquisition of land or land development rights.
• General corporate purposes.

Financials of the Company: (Consolidated)

(in Crores)	FY 18	FY 19	FY 20	31st Dec 2020
Revenue	13726.5	11978.8	12560.9	3160.4
Net Profit	1789.3	1643.9	744.8	(-264.3)

Valuation of Peer Group Companies:

Company Name	Face Value	EPS	PE Ratio	RoNW	NAV
Macrotech Developers Ltd	10	18.46	26.32	17.80%	103.86
Brigade Enterprises Ltd	10	6.39	44.67	4.66%	119.73
DLF Limited	2	(-2.41)	N/A	(26.62)	139.24
Godrej Properties	5	10.84	10.84	5.63%	190.64
Oberoi Realty Ltd	10	18.96	31.12	7.99%	237.33
Prestige Estates Projects Ltd	10	10.63	27.44	9.82%	139.41
Sobha Limited	10	29.69	15.12	11.59%	256.33
Sunteck Realty Ltd	1	7.13	52.14	3.46%	199.5

IPO DETAILS:

Details	Info
Issue Opens on	7th April 2021
Issue Closes on	9th April 2021
Issue Price	Rs.483 – 486
Face Value	Rs.10
Retail Category Allocation	35%
Minimum Lot	30 Shares
Minimum Investment	Rs.14,580
Issue Constitutes	11.50%
Issue Size	Rs.2500 cr ($337 million)

 

Market Cap	Rs. 21,740 cr ($2.93 billion)
Listing at	NSE & BSE
Equity Shares Offered (Fresh)	5,14,40,329
Equity Shares Prior to the Issue	39,58,78,00,00
Equity Shares after the Issue	44,73,18,329

Important Dates:

Finalization of Basis of Allotment	On or Before 16th April 2021
Initiation of Refunds	On or Before 19th April 2021
Credit of Equity Shares	On or Before 20th April 2021
Listing Date	On or Before 22nd April 2021

IPO Valuation Parameters:

Earnings Per Share (EPS	Price To Earnings ratio (PE)	Return on Net Worth (RoNW)	Net Asset Value (NAV)
18.46	26.32	17.80%	10386

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