Macrotech to use QIP proceeds for new projects, debt reduction

Over 90% of the book was allocated to long-term global investors.

Institutional placements attracted new investors like GIC, Oppenheimer, University Superannuation Scheme (USS), Amundi, Tata Mutual Fund. The company’s existing shareholders such as Capital Group, Ivanhoe Cambridge, Wellington, Nomura, Manulife, Nippon, Max Life also increased their investments through QIP.

Macrotech said it launched the QIP share sale on Monday and was subscribed more than three times within five hours of the issue opening.

The Mumbai-based developer plans to use the process to grow in the Mumbai Metropolitan Region (MMR) and Pune in a capital-efficient manner. It is also exploring plans to enter Bengaluru, which is seeing significant creation of technology jobs and wealth.

it will use 3,000 crore for new project agreements through the Joint Development Route and the balance 1,000 crore for debt reduction.

The company plans to nearly double its pre-sales 14,000 crore by 2023-24 and onwards 20,000 crore by 2025-26.

“After just six months of the IPO, we are pleased to conclude our institutional placement. Significant demand from marquee investors has enabled us to launch and close QIPs within hours of book opening – Indian Housing Industry A tremendous achievement for us. We see that all the structural factors are present for a significant increase in volumes in housing, especially in the middle income and affordable sectors, which is a focus area for us. With this fundraising, we are looking at JDA The deleveraging and capital light through model are well suited to achieve the twin goal of expansion,” said Abhishek Lodha, Managing Director, Macrotech Developers.

The debt to equity of the company is now 0.75x.

“We are seeing a very strong pipeline of JDA deals and plan to invest approx. Add 3,000 crore more in the next six quarters through these JDAs We have a GDV of Rs 40,000 crore in our portfolio,” Lodha said.