The IPO of Macrotech Builders has a low home mortgage rate of interest working in its favor.

Macrotech Developers is one of the largest real estate firms in India. It has taken over a decade to get to this point, but the firm is going public. 

Macrotech Developers’ IPO has low home loan interest rate playing in its favour — but high debt and COVID-19 pandemic cloud its prospects

The firms' core idea relies on the forming of buildings. This is good news as home loan interest rates in India have fallen over the past five years. 

On April 7, their IPO gained subscription 0.24 times.

 

Category

Ipo Subscription

QIB

0.58 times

NII

0.09 times

RII

0.10 times

Employee

0.01 times

Total

0.24 times

 

Indian home loan interest rates are at their lowest in years. And it results in a strong recovery in transactions across all housing segments.

The real estate firm fought hard by the covid. Analysts believe the firm is seeing the worst time in five years. This risk increases with Macrotech Developers' high debt levels. And these moves from its 2,500 crores IPO.

Most of the ventures are in the MMR. The debt level could be a cause for concern. The high debt level reduces the ability to withstand more.

Advertising

Reliance Securities agree that while the IPO has risk factors. When opposed to rivals such as Godrej and DLF, the price range of 482 to 486 is reasonable. 

Macrotech Developers have many ventures in the works. The rate of return seems to be equal to a similar firm. 

BrokeBrokerage

Recommendation

Reliance Securities

Subscribe

Choice Broking

Subscribe

Capital Market

Avoid

SMC Global

Neutral

 
  It took a long time for the £2,500 IPO to happen.

SEBI gave the firm its approval in 2009 and 2018, but it delayed its IPO plans because the market was not ready.

Despite the danger of COVID 19, Marcotech expects the IPO will go forward. This is the first IPO in the fiscal year 2021-22. Makers of macro tech owe a lot of money. 

The proceeds from the real estate IPO would help to repay the debts. The rest funds will help construction rights. also the general expenses.

Macrotech Developers gross debt as of 31st December 2020 was £ 18,662.19 billion. Macrotech Developers have a plan to lower net debt to £ 12,700 billion in the coming quarters. 

Today, the firm has 91 completed projects in the works, with another 36 in the pipeline. And the issue about how the COVID-19 could unfold is fraught with confusion.

Share
Search blog