By Nesil Staney
Marathon Nextgen Realty, a Mumbai-based developer, is in the process of raising more than Rs 500 crore through a qualified placement (QIP) of its shares, said bankers in the know. JM Financial, a top domestic investment bank, is the advisor. The transaction is likely to close early next week, said sources.
Incorporated in 1978, Marathon is primarily engaged in the business of construction, development and sale of commercial and residential real estate projects. It plans to enter new areas like SEZs, townships, infrastructure development, entertainment and leisure, education, hospitality and the capital markets.
The firm’s stock is trading at Rs 562 and it now commands a market capitalization of Rs 2890 crore. The promoters own 73%, domestic institutions own 2.4% and foreign funds own 2.3%.
QIPs are finding many takers in last two months after a lull early this year. This week, Biocon successfully executed a Rs 4,500 crore QIP to bolster growth in biosimilars and generics. A non-banking financial company (NBFC) Capri Global Capital, also announced the successful completion of QIP raising Rs 2,000 crore from a diverse group of institutional investors, including Sunil Singhania’s Abakkus Asset.
The government is expected to sell a stake in at least five public sector banks through this route, as per media reports. Also keenly awaited is a large Rs 25,000 crore QIP of the State Bank of India (SBI). City Union Bank have also announced plans to raise funds through QIP recently.
Indian Renewable Energy Development Agency (Ireda) raised Rs 2,006 crore from a QIP earlier this month, where LIC picked 50% shares at Rs 1,003 crore. In March, Htachi Energy raised Rs 2000 crore through QIP. Home First Finance Company also launched a QIP of Rs 1,000 crore in April. Restaurant Brands Asia, which operates Burger King, also raised Rs 500 crore funds through QIP in April.