Auto components manufacturer Ramkrishna Forgings Ltd. has launched a Qualified Institutional Placement (QIP) to raise funds. It made that announcement to the exchanges late Wednesday night.
The company has fixed a floor price of ₹644.46 per share for the QIP. The floor price implies a discount of 6.53% from the stock's closing price on Wednesday.
Sources told CNBC-TV18 that the company is looking to raise ₹1,000 crore through the issue. The indicative issue price is at ₹614 per share, which is a discount of 11.1% from Wednesday's closing price, the sources said.
The QIP's implied equity dilution comes up to around 9.9% of the total equity. The company's promoters held just over 47% stake based on the September quarter shareholding pattern.
The sources also added that the funds raised will be used for reducing debt and for working capital requirements.
Ramkrishna Forgings was also part of CNBC-TV18's dealing room chatter on November 2 when it was reported citing dealing room sources that the company plans on raising ₹1,000 crore through the QIP.
In an interaction with CNBC-TV18 on October 3, Ramkrishna Forgings' Naresh Jalan had said that the company does not aspire to be a zero-debt company and that it is comfortable with a debt-EBITDA ratio of 1x.
Jalan also said that the company will bring down debt to levels between ₹100 - ₹150 crore by the end of the financial year.
Shares of Ramkrishna Forgings ended 0.4% lower on Wednesday at ₹689 and the stock has gained nearly 160% so far in 2023.
(With Inputs From Nimesh Shah.)
(Edited by : Hormaz Fatakia)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Feroze Gandhi to Rahul Gandhi: Rae Bareli's tryst with Congress
May 3, 2024 11:36 AM
Rahul Gandhi to contest from Raebareli, close aide KL Sharma from Amethi
May 3, 2024 8:39 AM
BJP's Hindi heartland dominance faces test in phase 3 polls
May 2, 2024 9:14 PM