Indian real estate company Macrotech Developers’ shares opened 10 per cent below their offering price in its stock market debut on Monday, after the initial public offering saw lukewarm subscription demand from investors.
Macrotech, formerly Lodha Developers, is among the major players in the Indian real estate industry. Most of its residential projects are concentrated in Mumbai.
The company’s shares opened at Rs 439 apiece compared with the offer price of Rs 486. The company’s IPO was subscribed 1.36 times earlier in the month as its weak sales and substantial debt, coupled with a resurgence of COVID-19 cases in India, weighed.
“The company has substantial debt and contingent liabilities and the impact of Covid-19 on the business is still uncertain,” said Saurabh Joshi, an equity research analyst at Marwari Shares and Finance Ltd.
