PG Electroplast shares were buzzing in trade on December 5, surging 6 percent to hit a record high of Rs 820.75 after the company launched a Qualified Institutional Placement (QIP) to raise up to Rs 1,500 crore.
At 09.57 am, shares of PG Electroplast were trading at Rs 812.05 on the NSE, slightly off its record highs. With this, the stock has surged 16 percent in the past week.
Shares will be offered at floor price of Rs 705.18 apiece in the QIP, reflecting a near 9 percent discount to the Wednesday closing price of the stock. The QIP will result in an equity dilution of 6.7 percent, with proceeds earmarked for working capital needs, loan repayment, and other general corporate purposes. PG Electroplast secured board approval for the share placement on October 19, followed by shareholder approval through a special resolution on November 13.
According to CNBC-TV18 sources, the indicative issue price for the QIP is expected to be in the range of Rs 690-699 per share.
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PG Electroplast's management confirmed that the company is on track to meet its planned capital expenditure (capex) of Rs 380 crore for the year.
Out of this total, around Rs 165 crore is allocated to the product business, aimed at expanding capacities through investments in plant and machinery. Around Rs 185 crore will be directed towards acquiring land and constructing buildings for infrastructure, while the remaining Rs 20 crore will be spent on maintenance capex and smaller investments in the plastic component sector, particularly for sanitary ware. The company noted that some of these expenditures have already been made, as stated in November.
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