Macrotech: Macrotech seeks to raise $ 537 million through sale of shares to institutional investors

Mumbai: Macrotech Developers, owner of Lodha Group, launched $ 537 million share sale to institutional investors as Mumbai-based real estate company seeks to deleverage its balance sheet and create cash for land acquisitions .

The company will issue 3.4 crore of shares to institutional investors at a floor price of 1,184.7 per share, down 7.8% from Monday’s closing price of 1,283.45, according to the notebook. charges issued by bankers for the agreement. As funds are raised by issuing new shares, it will result in a 7.5% dilution of the company’s capital.

Bank of America Securities, JP Morgan and Kotak are handling the sale of the shares, according to the conditions sheet.

Macrotech, BofA, JP Morgan and Kotak did not respond to questions via email.

“The Company intends to use the net proceeds for a variety of purposes including, but not limited to, capital expenditures including the acquisition of land, land development rights or land rights. development, deleveraging and general objectives of the company, ”the terms of the transaction indicated.

Macrotech shares have risen 98% in the past six months. The company raised 2,500 crore in the primary market with an initial public offering at 486 per share in April. The stock has climbed 164% since its IPO.

As of March 31, 2021, Lodha’s domestic operations had approximately 6,000 crore in debt repayments over 24 months.

In May, Abhishek Lodha, chief executive and CEO of the group, said the company aims to free itself from debt over the next three years.

Indian companies raised around $ 13.4 billion through equity capital markets (ECM) issues during the first half of 2021, according to data compiled by Refinitiv. This is a 36.1% drop in the amount raised by companies compared to the first half of 2020, despite a 91.7% growth in the number of these share sales, as the size of transactions has been reduced. smaller.

The real estate sector took second place with a 10.8% market share in terms of emissions, according to the data.