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BENGALURU - Indian real estate company Macrotech Developers Ltd has raised 40.28 billion rupees ($540.71 million) through issue of 34 million shares via a qualified institutional placement (QIP), according to a term sheet seen by Reuters.

On Monday, Macrotech approved opening of the QIP and set a floor price for the issue at 1,184.70 rupees per share, a 7.8% discount to its closing price on Nov. 15.

A QIP helps publicly-listed companies raise capital from domestic markets without the usual standard regulatory compliance and allows only institutional investors to take part in the offer.

Macrotech, formerly known as Lodha Developers, had also said it may offer an additional 5% discount on the floor price.

The company, which has most of its residential projects concentrated in the country's financial capital of Mumbai, had seen a tepid market debut on Indian exchanges in April earlier this year.

Since listing, shares have rallied over 188% and on Tuesday shares were up 4% as of 0535 GMT.

Analysts at Emkay Global Financial Services said that the nature and quantum of QIP did not come as a surprise; however, the timing of the capital raise is much sooner than anticipated as Macrotech had indicated a capital raise in the next 12 months.

"We believe Macrotech is putting in place the right ingredients for scaling-up operations", the Emkay flash note added.

The real estate firm intends to use proceeds from the placement for its capital expenditure needs including acquisition of land and land development rights.

Macrotech's net debt stood at 125 billion rupees ($1.68 billion) as of quarter ending Sept 30, and the company expects to use the offer proceedings to also deleverage and repay debt.