Macrotech Developers approves issue price of ₹1,170 per share for QIP
Premium- Macrotech Developers on Monday set a floor price of ₹1,184.7 for the qualified institutional placement (QIP)
Macrotech Developers (Lodha) on Thursday announced the closure of its Qualified institutional placement (QIP) that had opened on Monday. The company has approved the issue price at ₹1,170 for its QIP as compared to floor price of ₹1,184.7 per share.
“The board in its meeting determined and approved the issue price of ₹1,170 per Equity Share (including a premium of ₹1,160 per Equity Share), which is at a discount of 1.24 % (i.e. ₹14.70 per Equity Share) to the floor price of ₹1,184.70 per Equity Share determined as per the formula prescribed," the company announced in an exchange filing.
The real estate firm on Monday launched a share sale to raise ₹3,000 crore- ₹4,000 crore from institutional investors. Macrotech approved opening of the QIP and set a floor price for the issue at ₹1,184.7 per share, a 7.8% discount to its closing price on November 15.
A QIP helps publicly-listed companies raise capital from domestic markets without the usual standard regulatory compliance and allows only institutional investors to take part in the offer. Macrotech intends to use proceeds from the placement for its capital expenditure needs including acquisition of land and land development rights.
“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 had said in a BSE filing.
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