CG Power eyes Rs 3,000 crore QIP; issue priced at over 3% discount to market price

Shares of CG Power closed at Rs 682.10 on BSE on Monday.

CG Power & Industrial Solutions plans to raise as much as Rs 3,000 crore through a qualified institutional placement (QIP) at a price of approximately Rs 660, which is nearly 3.25% lower than Monday's closing price, as per sources familiar with the matter.

Further, the indicative issue price of Rs 660 is nearly three percent lower than the floor price of Rs 679.08 as ascertained by the formula prescribed by the Securities and Exchange Board of India (SEBI).

Shares of CG Power closed at Rs 682.10 on BSE on Monday. In terms of dilution, the QIP size comes to around 2.89% of the post-issue outstanding equity paid-up capital, assuming full subscription of the offering.

The QIP opened post market hours on Monday and will close today by 9am.

DAM Capital Advisors, IIFL Capital and HSBC Securities are the merchant bankers managing the QIP.

The fund raising comes close on the heels of the engineering company securing an order for the supply and servicing of 765kV Transformer package 7TR-12 Bulk by the Power Grid Corporation of India Ltd.

The total value of supply of goods including services is around Rs 641 crore, becoming the first single largest order bagged by the company. The supply of the goods is expected to be completed in 18 to 36 months, as per a stock exchange statement issued by the company.