Brigade Enterprises launches QIP to raise Rs 1,500 crore, stock rises

The proceeds from this QIP will be used by the Bengaluru-based real estate developer for debt repayment and land acquisition.

Brigade Enterprises shares gained over 3 percent on September 3 as the company launched Qualified Institutional Placement (QIP), looking to raise Rs 1,500 crore. The company has set the floor price for the QIP at Rs 1,164.70 per share, a 5.7 percent discount from its previous closing price.

IIFL Securities and Kotak Mahindra Capital are reported to be the bankers of the issue. The proceeds from this placement will be used by the Bengaluru-based real estate developer for debt repayment and land acquisition.

A Qualified Institutional Placement (QIP) is a way for companies to raise funds by issuing shares to qualified institutional investors like mutual funds and insurance companies.

It is a faster and often less costly method compared to other capital-raising options, with the share price set based on a floor price and regulatory guidelines.

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The decision to proceed with the QIP was first approved by the board on February 6, and subsequently received shareholder approval through a special resolution passed on March 22. On September 2, 2024, the Committee of Directors convened and passed several key resolutions to set the stage for the QIP launch. They authorized the immediate opening of the QIP issue.

In the previous session, Brigade Enterprises shares closed 2.2 percent higher at Rs 1,234 on the National Stock Exchange (NSE). The stock has gained nearly 38 percent so far this year. In the past 12 months, the stock has zoomed 95 percent, nearly doubling investors' money. In comparison, benchmark Nifty rallied 30 percent during this period.

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