₹124 a Piece, ₹880 Cr in Play: Mason Infratech’s Capital Push Begins

Image Source: IPO Watch

Mason Infratech Ltd approved a two-step capital raise proposal, approving the issue of 2.4 million convertible warrants and 4.96 million equity shares of ₹124 each. The move is to strengthen the balance sheet of the company and finance growth in the residential and commercial construction business.

Key Points:

- The 2.4 million warrants will be granted on preferential terms exercisable into equity shares within 18 months, pending regulatory approvals.
- Concurrently, the board has approved the issuance of 4.96 million equity shares at ₹124 per share to be subscribed by promoters and strategic investors.
- ₹880 crore would be raised under combined underwriting, improving liquidity as well as facilitating implementation of projects in Gujarat and Maharashtra.
- Share price of Mason Infratech has increased over 40% in the past three months, which reflects investors' faith in its growth trajectory.
- The company reported FY25 revenue of ₹94 crore and net profit of ₹12 crore, with an ROE of 52.1%, the highest in its peer group.
- Promoter shareholding is 71.6%, with institutional holding rising steadily.

Prospects:

With a strong order book and increasing demand in Tier-I and Tier-II cities, Mason Infratech is poised to expand. The new capital will be employed mainly to finance land acquisition, project development, and working capital, enhancing its footprint in India's vibrant real estate sector.

Sources: Value Research, Economic Times, BlinkX