Promoters of Macrotech developers pay off debt owed to the company
The promoters of Macrotech Developers Ltd. (formerly Lodha Developers Ltd.) have paid off all of the debt they owed the company.
âThe promoters owed the company a sum of Rs 1,596 crore as of March 31, 2021. Of this amount, an amount of Rs 400 crore was repaid on April 29, 2021. The balance of Rs 1,196 crore, as well as accrued interest , was reimbursed today [June 30]”the Mumbai-based real estate developer said in a swap brief.” So all of the debt was paid off quickly in just over two months from the company listing. “
Macrotech Developers debuted on the stock exchanges on April 19 after an initial public offering of Rs 2,500 crore. The IPO received offers for 7.04 crore of shares against an offer of 5.14 crore.
“This repayment combined with our fundraising for the IPO and the continued generation of organic free cash flow helps the company to move further on its debt reduction plans,” the file said. “The company is targeting a significant reduction in net debt to Rs 10,000 crore by the end of fiscal 2022 and as of now the company is on track for that.”
The company, he said, intends to continue to focus on its low-cap growth strategy around affordable and middle-income housing and digital infrastructure (warehouses, data centers, industrial parks, among others) to ensure continuous deleveraging and simultaneous growth.
The promoters, according to the file, raised funds through a long-term instrument with a term of more than three years with no repayment obligation before that. âPromoters will be able to deleverage in accordance with MPS (minimum public shareholding) obligations to reduce their stake to a maximum of 75% over a period of three years from listing.
Macrotech Developers’ net profit rose 37% sequentially to Rs 310.55 crore in the quarter ended in March, according to a separate trading record.
Its operating income jumped 67% to Rs 2,533.56 crore.
As of December, the company had 91 completed projects comprising approximately 77.22 million square feet of developable area; 36 projects in progress with 28.78 msf of developable area; and 18 planned projects with a developable area of ââ45.08 msf. In the logistics and industrial park portfolio, it has an ongoing and planned development of approximately 290 and 540 acres, respectively, according to its red herring prospectus.