Macrotech Developers Ltd, formerly Lodha Developers, on November 15 announced a QIP (Qualified Institutional Placement) to raise Rs 3,000-4,000 crore via the share sale, which will entail a 7.5 percent of company shareholding.
Notably, only qualified institutional buyers can participate in QIPs. The base price of shares, in this case, has been set at Rs 1,184.7.
“We require additional funding, inter alia, to capitalize on significant growth opportunities lying ahead under the capital-light business model of joint development and towards acquiring land parcels, future expansion plans, deleveraging and for general corporate purposes," the company mentioned in a stock exchange filing.
The company also said it aims to achieve the requisite public shareholding, which, as per the mandate, is 25 percent within 3 years of being listed on the stock market. The company went public in April 2021, raising almost Rs 2,500 crore, with the issue price set between Rs 483 and Rs 486.
Currently, the share is trading at Rs 1,283. With Bank of America Securities, JP Morgan, and Kotak are managing the share sale, the group "aims to turn a zero-debt company over the next three years, focusing on mid-income, affordable housing, and industrial & logistics business", according to Abhishek Lodha, MD, and CEO.
As per the company's website, it has around 40 ongoing and 23 planned projects in the pipeline. Its balance sheet (March 2021) shows that the group has around Rs 6,000 crore of debt that is set to mature in Indian operations over the next 2 years. With a stellar performance, the stock has already rallied 164 percent since it went public.
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