Mahindra Gesco raises $105mn via QIP

Mahindra Gesco Developers (MGDL) has raised $105 million (Rs 480 crore) via qualified institutional placement (QIP).

According to a release issued by Mahindra Gesco today, the QIP opened on September 29 and closed yesterday.

"The placement received demand of more than $160 million at a price of Rs 800 per share and above. The placement received participation from a wide segment of investors like FIIs, mutual funds, banks and insurance companies. The QIP was priced at Rs 800 per share, which was around 1% premium to the two-week average market price prior to the issue opening date," the release added.

MGDL has so far developed over 3.54 million sq. ft. of residential and commercial space, and is currently developing residential and commercial space in Mumbai, Chennai, Pune, Gurgaon and Pimpri.

MGDL has also developed Mahindra World City, Chennai, which is the only operational SEZ with private sector participation.

Arun Nanda, vice chairman of Mahindra Gesco Developers, said: "We are extremely pleased that large institutional investors have appreciated our inherent strengths and reposed faith in our company. The positive response to the issue reflects the confidence that global and domestic institutional investors have in our company and its integrated business model."