Macrotech IPO opens on Wednesday: Should you subscribe?

The company’s revenue and sales volume have seen a decline from FY18 to FY20.

Synopsis

The promoter group will dilute 11.5% stake through the current offering, which means it will have to offload more shares in the future to reduce its stake to 75% or below to abide by the regulatory requirement. Given these factors, the IPO looks more suitable for investors with a high risk appetite.

ET Intelligence Group: Macrotech Developers plans to raise Rs 2,500 crore through the primary market to partially repay debt and purchase land and development rights. The real estate company primarily operates in the Mumbai Metropolitan Region (MMR) under the brand name of Lodha Developers. Currently, the company is saddled with debt amid falling revenue over the past few years. However, if the current bout of recovery in the sector persists,

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