Bharat Forge launches QIP, may raise Rs 1,650 crore via equity share sale

Bharat Forge has set the floor price for the QIP at Rs 1,323.54 per equity share.

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26 Aug, 2025 12:21

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Bharat Forge Ltd has launched a Qualified Institutions Placement (QIP) of equity shares, in which the company reportedly seeks to raise up to Rs 1,650 crore. The company has set the floor price for the equity issue at Rs 1,323.54 per share, it said in a stock exchange filing on Wednesday evening.

The indicative issue price for the equity share sale is set in the range of Rs 1,290-1,320 per share, representing a discount of 4.2 to 6.4 percent to the stock’s last closing price, reported CNBC-TV18 citing unidentified sources.

Bharat Forge shares gained over 2 percent on Wednesday to end at Rs 1,378, ahead of the announcement of the equity issue. The stock has risen about 18 percent in the last one year, with the company’s current market capitalisation at over Rs 64,000 crore.

The QIP was approved by Bharat Forge’s Investment Committee on Wednesday, following earlier approvals from its board and shareholders via a postal ballot on November 8, 2024. As per SEBI regulations, the floor price has been calculated using the pricing formula prescribed under the SEBI ICDR Regulations. The company retains the discretion to offer a discount of up to 5 percent on the floor price, as allowed by the shareholder resolution.

Bharat Forge is set to file the preliminary placement document with the BSE and NSE today. The trading window for the company’s securities has been closed since September 25, 2024, in compliance with its Prevention of Insider Trading Code.

The QIP comes after the company posted subdued financial results for the September quarter. Revenue for the quarter was largely flat at Rs 2,246 crore, compared to Rs 2,249 crore a year earlier, while net profit rose 4.4 percent to Rs 361.1 crore. Bharat Forge has indicated it expects stable performance in the second half of the financial year, with a focus on improving revenue and profitability in its subsidiaries.

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