Lead and aluminium recycling company Gravita India plans to launch its proposed share placement possibly as early as on December 16, in an effort to raise up to Rs 1,000 crore, pricing the QIP at Rs 2,100 per share.
The company already has the board approval for the fund raise that may lead to an equity dilution of 7%, as per CNBC-TV18.
This fund raise will likely be used for additional capex, M&A opportunities, debt reduction and other general corporate purposes. "We are looking at some opportunities in merger and acquisitions across globe. So we want ourselves to be ready as and when such an opportunity is there," CEO Yogesh Malhotra had told analysts in October.
In September, Gravita India had announced the acquisition of its first recycling unit in Europe.
The company is on track to set up a pilot project of lithium-ion battery recycling, and its first rubber recycling plant in Mundra. Gravita India said it is making steady progress towards increasing its capacity to over 5 lakh metric tonne per annum by FY27. The company has investment plans of Rs 600 crore which includes capex for existing as well as new verticals, like lithium-ion, rubber and steel recycling.
The metals and mining company has a market capitalisation of over Rs 15,600 crore, and on a YTD basis, the shares are higher by 108%. Both mutual funds as well as institutional investors have increased their holding in the company at the end of September quarter.
The company has registered a 11% on year revenue growth during the second quarter, along with an over 24% on year profit growth.
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