Axiscades Technologies zooms 8% on Rs 300-crore QIP launch

Shares of Axiscades Technologies jumped over 8 percent on January 11 after the company launched a qualified institutional placement (QIP) issue to raise up to Rs 300 crore, with a base size of Rs 220 crore and an upsize option of Rs 80 crore.

The indicative issue price is set at Rs 662 per share, implying a discount of 14.42 percent to the last closing price. The equity dilution is projected to be 11.78 percent of the equity capital.

The board approved the fundraising in November and said it may offer a discount of not more than 5 percent to the floor price. The proceeds from the QIP will be ised for repayment or pre-payment, either in full or in part, of borrowings amounting to Rs 220 crores, along with allocations for general corporate purposes.

At 12:19 pm, Axiscades Technologies stock was trading at Rs 833.00 on the NSE, 7.6 percent higher from the previous close.

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A successful QIP has the potential to propel the company 'sgrowth, foster innovation in engineering solutions, and enhance competitiveness. However, potential challenges or underperformance may require strategic adjustments.

In December, the company acquired a 100 percent stake in Epcogen, an engineering design and solutions company that works in the energy space, for Rs 26.25 crore. The acquisition has an additional three-year earnout of Rs 7 crore based on performance.

Through the acquisition, Axiscades can fortify its position in the energy markets in West Asia and North America, it said.

Axiscades Technologies is an end-to-end engineering and technology solutions provider, catering to aerospace, defence, engineering, heavy engineering, automotive, energy and semiconductor industries serving Global OEMs.

In the past year, Axiscades Tech has more than doubled investors' money, rising 167 percent. In comparison, the benchmark Nifty gained around 21 percent. In past month, the stock has rallied 33 percent, outperforming the Nifty.

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