The stock of Macrotech Developers jumped 13.6 per cent on Tuesday after the company said that it has raised ₹4,000 crore from institutional investors through a QIP issue. After hitting an all-time high of ₹1,459.25, the stock on the BSE closed at ₹1,408, up 9.7 per cent over the previous day's close of ₹1,283.45.

The developer plans to utilise the proceeds for multiple purposes, including repaying debt, land acquisitions and related capital expenditure purposes.

According to Emkay Global, overall, the nature and quantum of QIP did not come as a surprise, given that promoter holding needs to be pared down to 75 per cent (vs. nearly 89 per cent currently) within three years from listing. However, the timing of the capital raise is much sooner than anticipated as Macrotech in its Q2 presentation indicated a capital raise in the next 12 months. The QIP will reduce promoter shareholding to 83 per cent, Emkay said.

“We believe Macrotech is putting in place the right ingredients for scaling up operations via expanding management bandwidth by new hires across levels and growth capital,” which reiterated its Buy rating on Macrotech, with a target price of ₹1,250.

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