homereal estate News

Macrotech Developers to raise Rs 4,000 cr from share sale to institutional investors: Report

Macrotech Developers to raise Rs 4,000 cr from share sale to institutional investors: Report

Macrotech Developers to raise Rs 4,000 cr from share sale to institutional investors: Report
Profile image

By CNBCTV18.com Nov 16, 2021 3:01:34 PM IST (Updated)

Mumbai-based real estate company, and owner of Lodha Group, Macrotech Developers is looking to raise nearly Rs 4000 crore ($537 million) through a qualified institutional placement (QIP). The company will be selling 3.4 crore shares to institutional investors at a floor price of Rs 1,184.7, Economic Times reported on Tuesday. The company’s shares had closed at Rs 1,283.45 on November 15.

Recommended Articles

View All

QIP is a capital-raising tool that companies use to issue securities that are convertible to equity shares to a qualified institutional buyer. Macrotech in this instance is opening its QIP through the issue of fresh shares and will see a dilution of 7.5 percent in its equity. Bank of America Securities, JP Morgan, and Kotak Securities are going to be managing the sale, according to the term sheet offered by the company.
The company is aiming to use the raised capital for clearing its debt.
"The company intends to use the net proceeds for various purposes, including but not limited to, capital expenditure including acquisition of land, land development rights or development rights, deleveraging and general corporate purposes," ET reported citing the terms of the transaction.
The company had raised Rs 2,500 crore earlier in the year through its initial public offering when it had offered its share for an issue price of Rs 486 per share in April. Since then the company’s shares have rallied 164 percent. The company’s most recent quarterly earnings report saw its revenue rise by 136 percent to Rs 2,124 crore, and profits climb to Rs 221.85 crore. According to a Business Standard report, Lodha’s domestic operations still carried a debt of Rs 16,000 crore as of March 31, 2021.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Top Budget Opinions

    Most Read

    Market Movers

    View All
    Top GainersTop Losers
    CurrencyCommodities
    CompanyPriceChng%Chng