Shares of Max Estates Ltd. dropped by 6% after reaching a day’s high of Rs 648.50 on 5th September, following the company’s announcement of raising Rs 800 crore through a Qualified Institutional Placement (QIP).

The QIP was priced at Rs 597.50 per share, which is a 4.97% discount on the floor price of Rs 628.74 per share.

Based on a stock exchange report, the offering drew considerable attention from major local and overseas institutional buyers. This shows robust trust in the firm’s core business strengths, lineup of projects, and potential for future expansion.

The board sanctioned the raising of funds of Rs 150 crore through a preferential issuance of convertible warrants to Max Ventures Investment Holdings Pvt. Ltd. and Chairman of Dixon Technologies (India) Sunil Vachani, subject to the approval of the shareholders.

This capital raise follows a recent investment by New York Life Insurance Company (NYL), which acquired a 49% stake in Max Towers and Max House, two major commercial real estate assets of the company.

The company stated that the combined capital from the QIP, preferential allotment, and NYL investment will total Rs 1,300 crore in fresh equity funding for Max Estates, aimed at scaling up its business and accelerating growth plans.

The company’s market capitalisation fell to Rs 9,942 crore.

At 3:00 PM, the shares of Max Estates were trading 5.61% lower at Rs 618.70 on NSE.

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