Macrotech developers limited get 100% subscription from investors for its IPO By Yash Gupta, Angel Broking
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Lodha developers are not getting good response from retail investors, as IPO only able to get a subscription of 34% of its retail individual category. Overall IPO got subscriptions of 103% from all investors, some good response from qualified institutional investors. We still suggest retail investors to be away from this IPO as we expect very limited listing gain for the IPO.
Outlook & Valuation: Company has a strong brand in affordable and mid income housing projects, but is not able to deliver the growth in sales and free cash flow in the last couple of years. The company has posted sales degrowth of 68% in 9MFY21 and reported a negative profit after tax of 265 crores. Given weak revenue growth in the past and leverage balance sheet we assign a "NEUTRAL" rating to the IPO.
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On the higher side, immediate resistance is seen around 36000 - 36200 levels - Angel One
