Will Macrotech Developers get a successful listing this time on the stock market? By Yash Gupta, Angel Broking

04-08-2021 12:50 PM | Source: Angel Broking Ltd

Will Macrotech Developers get a successful listing this time on the stock market? By Yash Gupta, Angel Broking

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Below are Views On Will Macrotech Developers get a successful listing this time on the stock market? By Mr. Yash Gupta Equity Research Associate, Angel Broking Ltd

In earlier two attempts Macrotech Developers failed to get its stock listed on exchange, both the times the company took approval from SEBI but did not file RHP, this time things look different. We expect this time the company will be able to get a listing on the stock exchange this time, as there is a good response from anchor investors to the IPO and on Day 1 good response from retail and institutional investors also.

We are not expecting retail participation to be a huge one in this IPO as what we have seen in earlier IPOs along with this we expect listing gain also to be very limited.

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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Will Macrotech Developers get a successful listing this time on the stock market? By Yash Gupta, Angel Broking

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