Max Estates Raises Rs 800 Crore From Marquee Investors Via QIP
Max Estates will use the proceeds from this capital raise to further its growth and expansion plans by acquiring land, interests in land, and land development rights
Max Estates Ltd.'s Rs 800 crore qualified institutional placement was oversubscribed by marquee investors. The company allocated 1.33 crore shares at an issue price of Rs 597.50 each, indicating a 4.97% discount on the floor price of Rs 628.74 per share.
The issue that closed on Sept. 3 received overwhelming interest from leading domestic financial institutions and foreign institutional investors, according to an exchange filing on Thursday.
Max Estates will use the proceeds from this capital raise to further its growth and expansion plans by acquiring land, interests in land, and land development rights.
Additionally, the company's board approved a fund raise of up to Rs 150 crore, subject to shareholder approval, through the preferential issue of convertible warrants to Max Ventures Investment Holdings Pvt. and Sunil Vachani, Chairman of Dixon Technologies (India) Ltd.
The capital raise is nearing completion after New York Life Insurance Company recently invested in Max Estates, purchasing 49% of Max Towers and Max House, two of the company's key commercial real estate assets.
The capital raised through QIP, the preferential allotment, and the investment from NYL will cumulatively provide Rs 1,300 crore as fresh equity funding to Max Estates to scale up its business and accelerate its growth plans.
Shares of Max Estates were trading 5.74% lower at Rs 618.80 apiece, compared to a 0.21% decline in the BSE Sensex as of 3:06 p.m.
