The shares of Centum Electronics rallied over 5 percent to close at Rs 1,350 apiece on March 17. The development comes after the company announced that it has raised Rs 210 crore through its qualified institutional placement (QIP).
Notably, Prashant Jain's 3P India Equity Fund acquired 3.52 percent stake (over 5.17 lakh equity shares) in the company by participating in the QIP. This takes the firm's total shareholding in the company to 5.47 percent.
The company announced that the QIP comprised 18.10 lakh shares at an issue price of Rs 1,160 per equity shares. This, however, marked a discount of nearly Rs 60 from its floor price of Rs 1,220 per share. The QIP was open from March 10 to March 13.
The major players who took part in the QIP include HDFC Mutual Fund, Subhkam Ventures and 3P India Equity Fund. HDFC Mutual Fund bought nearly 33 percent of the total shares offered as part of the QIP.
Following the QIP, the total equity capital of the company stood at Rs 147.1 crore.
Earlier while announcing the QIP, the electronics system design and manufacturing company said it intends to 'delivering complete systems to the armed services', and is executing large projects. "We are actively working on large system-level opportunities in collaboration with our technology partners," an exchange filing said.
During the December quarter, Centum's consolidated revenue from operations fell by 6 percent on-year but increased by around 8 percent QoQ. The Q3 FY25 consolidated EBITDA margins stood at 6.9 percent and standalone EBITDA margin stood at 11.8 percent.
"Our margins were impacted mainly due to the losses in the Canadian subsidiary and lower utilization due to delays in new project starts in France," Centum had said after its December quarter earnings.
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