Transformers and Rectifiers to raise Rs 500 crore through QIP

11 Jun 2024 , 12:33 PM

Transformers and Rectifiers (India) Ltd. has announced a share sale to institutional investors to obtain finance. The corporation aims to generate up to ₹500 Crore via the share sale.

According to a stock exchange filing, the company has set a floor price of ₹699.95 per share, representing a 4.5% drop from Monday’s closing price.

According to sources, the share sale may result in a 5.2% equity dilution. The indicative price of the issuance is ₹665 per share, which is 9.38% lower than Monday’s closing price of ₹732.95 per share.

As per the reports, Transformers & Rectifiers aims to use the fund raising proceeds to fund capital expenditures, repay borrowings, working capital, inorganic growth, and general corporate purposes.

Following this share transaction, the selling shareholder will have a 60-day lock-up for future sales, subject to certain exclusions.

According to sources, Nuvama Wealth Management Ltd, formerly known as Edelweiss Securities Ltd, is the book running lead manager for the transaction.

Singhania & Co. acted as Legal Counsel to Transformers And Rectifiers (India) Limited (TRIL) on the QIP, represented by Pradeep Kumar Jain, Managing Partner, and Kshitij Asthana, Leader – Capital Markets.

Based on the March quarter shareholding pattern, promoter group entities owned 69.65% of the company. The stock has increased 21.17% in the past month, 228% in the previous six months, and 786.28% in the last year.

The company reported a 333.5% year-on-year increase in its consolidated net profit for the quarter and fiscal year ended March 31, 2024. In Q4FY24, the company’s earnings after tax climbed to ₹41.62 Crore, up from ₹9.6 Crore the previous year.

At around 11.06 AM, Transformers and Rectifiers India was trading 4.99% higher at ₹770.45, against the previous close of ₹733.80 on NSE. The counter touched an intraday high and low of ₹770.45, and ₹750, respectively.

Singhania & Co. are the Legal Counsel to Transformers And Rectifiers (India) Limited (TRIL) on the QIP, represented by Pradeep Kumar Jain, Managing Partner, and Kshitij Asthana, Leader – Capital Markets.

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