JK Tyre and Industries Ltd initiated its qualified institutional placement (QIP) on Tuesday with the aim of raising up to ₹ 500 crore.
The board has fixed the floor price at ₹358.96 per share, a discount of 5% to the scrip's closing price of ₹378.65 on the BSE on Tuesday.
In a filing to the stock exchanges on Tuesday, the company said that the committee of directors in its meeting held on December 19 approved the floor price and opening date for QIP.
QIP is a process in which a listed company in India can issue securities to institutional buyers like mutual funds and insurance companies, without the need for a formal public offering.
In November, the board of directors of the company approved raising of up to ₹500 crore via QIP mode.
Last month, JK Tyres said that it was confident that domestic tyre demand would be robust in the second half of the ongoing financial year. The demand, according to the management, will be strong in both the Original Equipment Manufacturers (OEMs) and the replacement market.
The company's India unit President, Anuj Kathuria, in a post-earnings interaction with CNBC-TV18, stated that the export markets will be good in the second half of the current financial year.
For the September quarter, exports contributed 17% to JK Tyres' overall topline, while replacement business contributed to 60% of sales.
Shares of JK Tyre and Industries were trading 0.91% higher at ₹382.1 apiece at at 10:55am.
