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About the Company

Macrotech Developers is one of the largest real estate developers in India, by residential sales value for the financial years 2014 to 2020, as per Anarock report.

They were formerly known as Lodha developers private ltd. The company’s core business is residential real estate developments with a focus on affordable and mid-income housing. Currently, they have residential projects in the Mumbai Metropolitan Region (MMR) and Pune. In 2019, they forayed into the development of logistics and industrial parks and entered into a joint venture with ESR Mumbai 3 Pte. Ltd(“ESR”), a subsidiary of ESR Cayman Ltd, an Asia Pacific focused logistics real estate platform.

They also develop commercial real estate, including as part of mixed-use developments in and around its core residential projects. Their brands include “Lodha”, “CASA by Lodha” and “Crown Lodha Quality Homes” for 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.

As of December 31, 2020, they have completed 91 projects, 36 projects are ongoing and 18 are planned projects. Further, ~290 and 540 acres are an ongoing and planned development in their logistics and industrial park portfolio. In addition, they have land reserves of ~3,803 acres for future development in the MMR

Objects of the Issue

* Reduction of the aggregate outstanding borrowings of the company on a consolidated basis

* Acquisition of land or land development rights

* General corporate purposes

Valuation

The real estate market in India has grown at a CAGR of ~10% from USD 50bn in 2008 to USD 120bn in 2017, and is expected to further grow at a CAGR of 17.7% to reach USD 1tn by 2030 driven by urbanization, inflow of FDI, nuclearization of families and increase in per capita income. Besides, low home loan interest rates, reduction in Stamp duty and introduction of reforms such as GST and implementation of RERA have also helped in maintaining transparency and boosting sales.

Macrotech Developers is well placed as real estate developer with capabilities and in-house resources to carry on a project from its initiation to completion. Over the years, they have established a strong reputation and track record in affordable and mid-income as well as premium housing projects. They have a diversified portfolio of residential developments, spread across price points and micro-markets in the MMR, which has largest share of supply and absorption of residential units. Its brand ’Lodha’ is well established in the market and have track record of delivering quality products.

This helps in increasing customer confidence, influences buying decision and target premium pricing for products. Going forward it plans to develop in MMR market as well as focus on tier-1 cities in India. Also it intends to develop more commercial projects as demand is likely to be driven by growing trend towards a ‘walk-to-work’ culture.

Key Risk:

* Rise in Covid cases may impact business

* High Debt on balance sheet

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