Shares of Transformers and Rectifiers (India) were firmly locked in the upper circuit of five percent on June 11 as the firm launched a qualified institutional placement (QIP).
The firm set a floor price of Rs 699.95 apiece for the issue, which comes at a discount of 4.5 percent to the closing price on June 10.
While the company has not revealed the total sum to be raised, sources told CNBC-TV18 that the firm will likely raise Rs 500 crore through the QIP.
At 11.20 am, Transformers and Rectifiers (India) shares were up five percent at Rs 770.45 apiece.
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According to the sources, the share sale might see 5.2 percent equity diluted, which indicates the price of the issue might be around Rs 665, coming in at a 9.38 percent discount.
The firm will use the proceeds to fund its capex plans, repay its borrowings, and for working capital, inorganic growth and the general corporate purposes. Following the QIP, the selling shareholder will have a lock-in period of 60 days before they can offload more shares.
The book-running manager for the QIP is Nuvama Wealth Management, earlier known as Edelweiss Securities.
According to the shareholding pattern from the March quarter, the promoter of the company holds a 69.65 percent stake in the firm.
Over the past one year, Transformers and Rectifiers (India) shares have jumped over 800 percent, giving investors nine-fold returns. In comparison, the Nifty 50 index has risen around 25 percent during the same time period.
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