Shakti Pumps (India) Ltd shares dropped more than 4% on Wednesday after the company announced raising funds up to ₹200 crore through a Qualified Institutions Placement (QIP) route. The water pump manufacturer’s Board of Directors at the meeting held on March 19, approved the proposal to raise an amount aggregating to not more than ₹200 crore through the launch of QIP.
The fundraising plan was first proposed at the company’s Board meeting on January 18, 2024.
The authorised opening of the proposed issue of equity shares to eligible qualified institutional buyers will be conducted through a qualified institutions placement. The board approved the floor price of the issue at ₹1,272.09 per piece, which is a 7.1% discount from the closing price of ₹1370.5 per share on BSE on Tuesday, March 19.
The issue price will be determined by the company in consultation with the Book Running Lead Manager appointed, related to the issue, Shakti Pumps said in a stock exchange filing.
QIP is a fundraising mechanism used by listed companies in India to raise capital. This is done by issuing securities to qualified institutional buyers (QIBs), while allowing such companies to issue equity shares, fully convertible debentures, or any securities aimed at raising funds.
Shakti Pumps last week bagged an order worth ₹93 crore from the Maharashtra Energy Development Agency (MEDA) to supply pumps.
Shares of Shakti Pumps were trading 1.92% lower at ₹1344.25 apiece on BSE at 1 pm.
(Edited by : Ajay Vaishnav)
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