When the IPO of Macrotech Developers hit the markets, Covid had started its panic surge, leading to a very volatile market, which in turn led to a tepid response. The grey market premium was also very dull and most expected a poor listing.
And that’s what happened – as against the IPO price of Rs.486, the stock got listed on the BSE at Rs.439, a discount of almost 10%; it recouped a bit and is now trading at Rs.464 levels but even its highest point of the day so far, at Rs.472 was below the IPO price.
The Rs.2500 crore IPO was subscribed 1.36 times – the lowest since Oct’19. The reserved portion of qualified institutional buyers (QIBs) was subscribed 3.05 times, non-institutional investors or HNIs by 1.44 times and retail individual investors saw a subscription of 40% and employees 17%.
In our New Issue Analysis, we had concluded, “Weak Financials with High Leverage do not provide comfort. Hence we recommend ‘avoid’. Better to play booming real estate theme through home loan financiers.”