Macrotech Developers soars after opening QIP issue

Macrotech Developers jumped 10.64% to Rs 1420, extending gains for the sixth session after the company launched its qualified institutional placement (QIP) issue.

The stock has climbed 23.19% in six sessions from its recent closing low of Rs 1,152.65 on 8 November 2021.

The realty developer launched its qualified institutional placement (QIP) issue on 15 November 2021. The floor price for the issue is Rs 1,184.70 per share. The developer said it may offer a discount of not more than 5% on the floor price.

The company is planning to utilize the proceeds from the issue for various purposes, including capital expenditure including acquisition of land, land development rights or development rights, to repay debt and general corporate purposes.

The media reported that Macrotech Developers will raise Rs 4000 crore by issuing around 3.4 crore new shares through this QIP issue, resulting in about 7.5% dilution in pre-issue outstanding equity capital.

As per the latest data, promoters held 88.50% in the company. Sebi ruling allows promoters three years from the date of listing to bring down holding to 75%.

Shares of Macrotech Developers entered the stock exchanges on 19 April 2021. The stock was listed at Rs 439, a discount of 9.67% to the IPO price of Rs 486. The price band for the IPO was set at Rs 483-486 per share.

Macrotech Developers, formerly known as Lodha Developers, is one of the largest real estate developers in India. The core business of the company is residential real estate developments with a focus on affordable and mid-income housing. It also develops commercial real estate, including as part of mixed-use developments in and around core residential projects.

The real estate developer posted a consolidated net profit of Rs 223.36 crore in Q2 FY22 as against a net loss of Rs 362.58 crore in Q2 FY21. It posted a 136% jump in net sales to Rs 2,124 crore in Q2 FY22 over Q2 FY21.

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