Som Distilleries shares tumble 4% after company calls off QIP plans

Som Distilleries and Breweries shares were down 4 percent in the morning trade on October 9 after the alcoholic beverages maker announced that it would not to go ahead with the proposed qualified institutional placement (QIP) because it received ‘less amount of bids’.

The company's fund-raising committee had on October 5 approved the QIP proposal along with a floor price of Rs 349.24.

“The company shall evaluate the viability of a funds raise at a suitable time. Our focus on growth and delivering shareholders value in the short and medium term remains intact,” the company said in context of having rescinded the QIP plans on October 9.

Som Distilleries on October 8 announced that it had entered a contract-manufacturing agreement for its brands in Punjab. Although it hasn’t announced the name of the contract-manufacturer, it said: “This is aimed at bolstering our supply capabilities to the armed-forces run Canteen Stores Department in the northern region of the country.”