MACROTECH SHARES TUMBLE NEARLY 5% IN DEBUT TRADE

Macrotech Developers Ltd, earlier known as Lodha Developers, made a weak debut on the stock exchanges on Monday, closing at a nearly 5% discount to the issue price. Its initial public offering (IPO) was subscribed 1.4 times last week supported by robust response from foreign investors.

The stock opened at ₹439 on the BSE and touched a low of ₹421.15, or fell as much as 13.34% from its issue price of ₹486. The scrip closed at ₹463.15, down 4.7% from its issue price.

Analysts say the weak listing was due to recent rising covid cases and discontinued decision of stamp duty waiver on property registration by the Maharashtra government. The stock is also under pressure because of some media reports suggesting a complete lockdown in Maharashtra in few days.

Foreign investors were the biggest contributors to this IPO. Foreign institutional investors (FIIs) had subscribed nearly 95% of its anchor book and accounted for 53% of the total bids in the IPO book holding. FIIs made 84% of the total bids from qualified institutional investors.

The institutional investor category of 10.23 million shares was subscribed 3.06 times. The non-institutional category, comprising high net-worth individuals, was subscribed 1.45 times.