Macrotech Developers’ Promoters Repay Debt Owed To Company

Promoters of Macrotech Developers Ltd. (erstwhile Lodha Developers Ltd.) have repaid the entire debt owed by them to the company.

“The promoters owed the company a sum of Rs 1,596 crore as on March 31, 2021. Of this, a sum of Rs 400 crore was repaid on April 29, 2021. The balance of Rs 1,196 crore, together with interest accrued thereon, has been repaid today [June 30],” the Mumbai-based real estate developer said in an exchange filing. “Thus, the entire debt has been repaid expeditiously in just over two months from the listing of the company.”

Macrotech Developers debuted on the bourses on April 19 after a Rs 2,500-crore initial public offer. The IPO received bids for 7.04 crore equity shares against an offer of 5.14 crore.

“This repayment combined with our IPO fundraise and continued organic free cash flow generation are helping the company to progress further in its deleveraging plans,” the filing said. “The company targets significant reduction in net debt to Rs 10,000 crore by end of FY2022 and as of now, the company is on track for this.”

The company, it said, intends to continue to focus on its capital-light growth strategy around affordable and mid-income housing and digital infrastructure (warehousing, data centres, industrial parks, among others) to deliver continued deleveraging and simultaneous growth.

The promoters, according to the filing, have raised funds by means of a long-term instrument having tenure greater than three years with no repayment obligation prior to that. “The promoters will be in a position to deleverage themselves in line with the MPS (minimum public shareholding) obligations of bringing their holding down 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 March, according to a separate exchange filing.

• Its revenue from operations jumped 67% to Rs 2,533.56 crore.

As of December, the company had 91 completed projects comprising about 77.22 million square feet of developable area; 36 ongoing projects with 28.78 msf of developable area; and 18 planned projects having 45.08 msf developable area. In the logistics and industrial park portfolio, it has an ongoing and planned development of about 290 and 540 acres, respectively, according to its red herring prospectus.

Shares of Marotech Developers rallied as much as 4.2% to Rs 704.4 apiece, before paring gains.