Marathon Nextgen’s ₹900 Cr QIP Ignites Growth Engine—Debt Down, Land Bank Up

Marathon Nextgen Realty Ltd has successfully raised ₹900 crore through a Qualified Institutional Placement (QIP), marking a pivotal moment in its transformation into a high-growth, asset-rich real estate powerhouse. The QIP, launched on June 23, 2025, saw strong institutional interest, with shares priced at ₹555.13 apiece, a 12% discount to the previous close.

 

Key Highlights:

 

- Fund Utilization Breakdown:

- ₹340 crore earmarked for debt repayment, targeting a 50% reduction in the company’s ₹1,100 crore consolidated debt

- ₹300 crore allocated for land acquisition, fueling future project launches

- ₹160 crore to be invested in subsidiaries

- Remaining funds reserved for general corporate purposes

 

- Strategic Expansion: The QIP proceeds will support Marathon’s asset-light growth model, focusing on Joint Development Agreements (JDAs) and cluster redevelopment in Central and South Mumbai.

 

- Merger Synergy: The company is also integrating 418 acres of group land through a board-approved amalgamation scheme, expected to conclude within 9–12 months. This will add ₹3,200 crore worth of assets to the balance sheet.

 

- Promoter Holding & Market Buzz: Despite a 17% equity dilution, promoter holding is expected to normalize at ~74.5% post-merger. The stock has surged 28% in the past month, reflecting investor confidence.

 

- FY26 Outlook: With 22 lakh sq. ft. of launches planned and a 20% sales growth target, Marathon is poised for a breakout year.

 

Source: CNBC-TV18, Moneycontrol, HDFC Sky