PG Electroplast's Board of Directors approved raising up to Rs 1,500 crore through Qualified Institutions Placement (QIP) in a meeting held on October 19. The board meeting, which commenced at 10am, also approved the draft notice for the Extraordinary General Meeting (EGM), where shareholders will be asked to approve the QIP issuance through a special resolution.
QIP is a way through which funds are raised by a company. Unlike an IPO or a FPO, only qualified institutional players are allowed to take part. The Rs 1,500 crore QIP issuance aligns with SEBI regulations and the Companies Act and is subject to receiving the necessary regulatory approvals.
In August, PG Electroplast announced plans to raise Rs 500 crore through a QIP to fund capital expenditure and working capital needs.
In Q1FY25, the company's consolidated net profit rose 147 percent on year to Rs 83.7 crore and revenue from operations increased 95 percent YoY to Rs 1,320.7 crore.
PG Electroplast offers manufacturing services to original equipment manufacturers of consumer electronics products. The Company assembles television sets and components, air conditioner sub-assemblies, DVD players, and compact fluorescent lamps.
Shares of PG Electroplast closed nearly 4 percent higher at Rs 616.80 on October 18 on the National Stock Exchange (NSE). Shares of the company have gained 158 percent on a year-to-date basis, massively outperforming the Nifty 50 index which gained over 14 percent during the time frame.
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