Sona BLW Precision to raise ₹2,400 Crore via QIP

5 Sep 2024 , 10:47 AM

Sona BLW Precision Forgings plans to raise to ₹2,400 Crore through a QIP of equity shares, according to sources.

According to reports, the business has set an indicative issue price range of ₹675-700 per share for the QIP. At the lower end of the pricing range, equity dilution is projected to be 6.06%. The monies raised will be used to repay or prepay certain outstanding borrowings, either in full or partially.

In addition, a portion of the revenues will be used to cover the balance consideration for the Novelic acquisition, support strategic initiatives, and pursue both organic and inorganic growth opportunities. The cash will also be used to purchase fixed assets like equipment and machinery, as well as for general business reasons.

Sona BLW Precision Forgings has announced a qualified institutional placement (QIP) of equity shares at a floor price of ₹699.01 per share.

Furthermore, the corporation may provide a discount of up to 5% on this floor price. The decision comes after the company’s board of directors approved it on July 24, 2024, and shareholders voted on a special resolution by postal ballot on August 30.

The fund raising committee (FRC) approved the QIP’s opening on September 4, 2024, which is also the “relevant date” for the issue.

The company has authorised the QIP’s preliminary placement document and application form, and the final issue price will be established after consulting with the book-running lead managers. The ultimate issue price will be established after consulting with the book-running lead managers.

At around 10.41 AM, Sona BLW Precision was trading marginally higher at ₹723.45, against the previous close of ₹722.40 on NSE. The counter touched an intraday high and low of ₹752.40, and ₹721.70, respectively.

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