We address the problem of distributed resource allocation for multicast communication in device-to-device (D2D) enabled underlay cellular networks. The optimal resource allocation is crucial for maximizing the performance of such networks, which are limited by the severe co-channel interference between cellular users (CU) and D2D multicast groups. However, finding such optimal allocation for networks with large number of CUs and D2D users is challenging. Therefore, we propose a pragmatic scheme that allocates resources distributively, reducing signaling overhead and improving network scalability. Numerical simulations establish the efficacy of the proposed solution in improving the overall system throughout, compared to various existing schemes.