Homegrown tyremaker JK Tyre & Industries Limited revealed that it has concluded its Rs 500 crore fund-raising via Qualified Institutional Placement (QIP).
The New Delhi-based company revealed that the QIP was priced at Rs 345 per share (including a premium of Rs 343 per share with a face value of Rs 2 per share)
“QIP received an overwhelming response from marquee investors including Indian mutual funds, insurance companies and foreign institutional investors,” the company said in a statement.
Emkay Global Financial Services Ltd managed the issue as sole Lead Manager.
“This is an important milestone in our corporate journey. Participation of several reputed investors in the issue endorses their faith and confidence in the company’s growth story. QIP funds will be used for growth capex and strengthening of the balance sheet,” noted Dr. Raghupati Singhania, Chairman and Managing Director, JK Tyre in an official statement.
On November 1, 2023, JK Tyre informed the stock exchange that its Board of Directors had sanctioned an expansion plan aimed at enhancing the company's tyre manufacturing capacity. The notification said that as of July 13, 2023, the annual capacity for tyre production stood at 155.11 lakh tyres, with a utilization rate of 95 percent. The company further stated that it aims to amplify this capacity by 19.45 percent, aiming to reach an enhanced capacity by October 2025.
Talking about the financial aspect and investment, JK Tyre had earlier stated that an investment of Rs 1,025 crore is required to achieve this substantial expansion. It had also said that it intends to finance this project through a combination of equity, internal accruals, and debt.
On January 1, 2024, JK Tyre and Industries' shares were trading at Rs 398.95 apiece on the BSE at 1:35 pm, which is slightly higher than the previous day's close.
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