Max Estates is looking at raising up to ₹800 crore via qualified institutional placement (QIP) at an issue price of ₹597.50 per share, people in the know told.

The company will utilise the proceeds from the QIP for the acquisition of land, interest in land and or land development rights, sources said. The issue price of ₹597.5 per share is at a 12.52% discount to the last closing price on the NSE.

The company is looking at diluting 9.08% of pre-issue outstanding equity share capital. IIFL Securities and Ambit are the book running lead managers for the QIP.

A couple of months ago, the Noida-based real estate developer's chief operating officer Rishi Raj told  that the company is targeting residential booking value of ₹4,000 crore in this fiscal year.

He also said the company is expecting lease rental from its operational assets to be to the tune of ₹120-125 crore in FY25. "But when you look at 4 to 4.5 million square foot of portfolio that we have on the commercial office front, three delivered, two under construction, one in Gurgaon, one in Noida, the total annuity income potential at 100% occupancy is in the tune of ₹450 to 500 crores," he said, adding he is looking at the same for FY29.

Max Estates shares ended 2.33% higher at ₹682 apiece on Thursday, August 29. The stock has gained 115.65% this year, so far.

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Published on August 30, 2024, 9:09:01 AM IST