Macrotech Developers Raises INR 3,547 crore with a QIP at an Issue Price of Rs 1,026 Per Share Resulting in Stock Price Increase

Real estate company Macrotech Developers said on December 12, 2022 that its board of directors had authorised the sale of about 7.2% of its shares to institutional investors at an issue price of Rs 1,026 per share. On December 7, the business announced a Qualified Institutional Placement (QIP) of equity shares.

Macrotech Developers of Mumbai markets its real estate and property developments under the brand name Lodha.

Macrotech Developers mentioned in a regulatory filing:

"... the Committee at its meeting held today, December 12, 2022, has, inter alia, passed the following resolutions: Determining and approving the offer price of Rs 1026/- per Equity Share, i.e. Rs. 3.25/- above the floor price of Rs 1022.75/- per Equity Share, determined along with the Selling Shareholders as per the formula prescribed under Regulation 176(1) of the SEBI ICDR Regulations, for the Equity Shares to be transferred to the eligible.

Through the QIP, the company offered shares to the Kuwait Investment Authority, the New World Fund, the Nomura India fund, and the Stichting Depositary APG Emerging Markets Equity Pool.

In accordance with the QIP, the business and its promoters have raised about Rs 10,000 crore in equity over the last twenty months, according to a statement from Lodha.

In addition, Lodha said that the promoters had assured him that, after the capital increase, their firm shares would be released from any encumbrances. "Having attained a 25 percent free float, the business will be eligible for inclusion in different free float-linked indexes in due course," the statement said.

Abhishek Lodha, MD & CEO of Macrotech Developers Ltd., commented on the development as follows:

"We are pleased that prominent long-only investors such as Capital Group, UBS, ADIA, NinetyOne (formerly Investec), Nomura, USS, William Blair, MSIM, Amundi, and Nippon MF have participated in the share sale, joining other globally renowned investors in our company, such as GIC, Ivanhoe Cambridge, Wellington."

Similarly, Macrotech Developers shares finished 2.46 percent higher at Rs 1,082.50 per share on the BSE. The stock's intraday high on the markets was Rs 1,086.40 per share.