17 Dec , 2024 By : Debdeep Gupta
Shares of lead and aluminum recycling company Gravita India shares jumped seven percent on December 17 after the firm launched a Qualified Institutions Placement (QIP).
According to CNBC-TV18, the firm will raise Rs 750 crore through the QIP, with an option to upsize the issue to Rs 1,000 crore. The QIP would result in an equity dilution of 5.2 percent. The firm received approval from its board to raise funds to an aggregate amount of Rs 1,000 crore on October 4, 2024.
The floor price for the QIP has been set at Rs 2,206.49 per share, which comes at a 1.5 percent discount to the previous session's closing price. Sources indicated that the indicative price for the issue would be Rs 2,096.2, which comes at a five percent discount to the floor price.
At 11.40 am, Gravita India shares were quoting Rs 2,313.45 per share, higher by 3.6 percent on the NSE.
This fundraise will likely be used to repay outstanding borrowings, meet working capital requirements, additional capex, M&A opportunities, debt reduction, and other general corporate purposes. "We are looking at some opportunities in mergers and acquisitions across the globe. So we want ourselves to be ready as and when such an opportunity is there," CEO Yogesh Malhotra had told analysts in October.
The company is on track to set up a pilot project of lithium-ion battery recycling, and its first rubber recycling plant in Mundra. Gravita India said it is making steady progress towards increasing its capacity to over 5 lakh metric tonnes per annum by FY27. The company has investment plans of Rs 600 crore which includes capex for existing as well as new verticals, like lithium-ion, rubber, and steel recycling.
Over the past year, the stock has recorded a 12-month run of 116 percent, in comparison to the Nifty 50's gain of 14 percent during the same time.
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