Macrotech climbs 3% on Rs 4,000 crore fundraise reports

NEW DELHI: Shares of Macrotech Developers climbed 3 per cent in early trade on Tuesday as reports said that the realty company has raised Rs 4000 crore via sale of shares to institutional investors.

On Monday, the firm, which is the owner of the Lodha Group, launched a Qualified Institutional Placement for the fund-raising.

The plan will result in a dilution of 7.5 per cent of the company’s equity and the share sale was managed by Bank of America Securities, JP Morgan and Kotak, according to the terms sheet.


The move is essentially aimed at deleveraging the firm’s balance sheet and freeing up cash for land acquisitions, the terms of transaction quoted the company as saying.

As on March 31, the company’s domestic operations had debt repayments worth around Rs 6,000 crore lined up over the next two years. Earlier in the year, the company’s top management said that the firm aims to be debt free over a timeframe of three years.

Macrotech, which raised Rs 2,500 crore from the primary market through an initial public offering in April, has witnessed a surge in its share price of close to 100 per cent over the last six months.

On Tuesday, the company’s scrip touched a high of Rs 1,325 on the National Stock Exchange as against the previous close of Rs 1,284.60.