Macrotech Developers raises Rs 3,300 crore capital through QIP route

Realty firm Macrotech Developers Ltd on Thursday said it has raised Rs 3,300 crore by selling shares to institutional investors.

In a statement, the company said it has successfully closed the Qualified Institutional Placement (QIP).

The QIP was oversubscribed nearly 3 times within 5 hours of issue opening and witnessed traction from a diversified set of investors with a long-term outlook, including sovereign funds, pension funds, insurers etc.

This is the fourth equity raise by Macrotech Developers in the last 36 months and the company has raised over Rs 13,000 crore.

The entire book was allocated to marquee global investors.

Existing shareholders of the company such as Capital Group, GQG, Nomura, ADIA, and HDFC Life reaffirmed their faith in the company by enhancing their investment through this QIP, the statement said.

The institutional placement also saw new marquee investors like Invesco Oppenheimer, Blackrock, Carmignac, Franklin Templeton, Norges, Lazard, APG and RWC etc.

"The significant demand from marquee investors enabled us to launch and close the QIP within hours of opening the book, a tremendous feat for the Indian housing industry," Abhishek Lodha, Managing Director & Chief Executive Officer of Macrotech Developers Ltd, said.

Lodha said the housing industry is going to play a pivotal role in the country's transition from a low-income economy to a mid-income economy by the end of the decade.

"During this period, housing is going to be the key beneficiary as well as the driver of economic growth," he added.

Lodha noted that all the structural factors are in place for significant growth in volumes.

"We are in only the fourth year of a multi-decade-long housing cycle," Lodha said.

With this capital raise, he said the company's balance sheet is exceptionally placed and will give it the opportunity to improve profitability.

The company would continue to deliver on our growth outlook, he said.