Max Estates has announced raising Rs 800 crore through a Qualified Institutional Placement (QIP). The QIP was priced at Rs 597.50 per equity share representing a 4.97 percent discount on the floor price of Rs 628.74 per equity share.
The company in an exchange filing said, "The issue received overwhelming interest from Leading Domestic Financial Institutions and Foreign Institutional Investors, as investors showed strong confidence in the business fundamentals, project portfolio, and growth prospects of the company."
Additionally, the board approved a fundraising of up to Rs 150 crore by way of preferential issue of convertible warrants to Max Ventures Investment Holdings Private Limited and Sunil Vachani, Chairman of Dixon Technologies (India) Limited, the release said. However, it is subject to the approval of the shareholders.
The capital raise comes close after recently, New York Life Insurance Company (NYL) invested in Max Estates and bought 49 percent of Max Towers and Max House, two key commercial real estate assets of the company.
The capital raised through QIP, the preferential allotment and the investment from NYL will cumulatively provide Rs 1300 crore as fresh equity funding to Max Estates to scale up its business and accelerate its growth plans, the company said.
Max Estate's share price dropped 6.15 percent to hit the intraday low of Rs 615.2 per share on the NSE. The stock has been falling for the last two days and has fallen 5.74 percent in the period.
At the time of publishing, the stock was trading at Rs 621.95 apiece on the NSE.
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