Axiscades Technologies Surges 8% as it Launches Rs 500 Crore QIP

11 Jan 2024 , 01:55 PM

Axiscades Technologies witnessed an 8% surge in its shares on January 11 following the launch of a Qualified Institutional Placement (QIP) to raise Rs 500 crore.

The floor price for the QIP was set at Rs 696.70 by the engineering and technology solutions firm’s board, representing a 9.9% discount from its previous close on the National Stock Exchange (NSE).

The board, which approved the fundraising in November, indicated a potential discount of not exceeding 5% to the floor price.

A successful QIP is expected to contribute to the company’s growth, foster innovation in engineering solutions, and enhance competitiveness. However, challenges or underperformance may necessitate strategic adjustments.

In December, Axiscades Technologies acquired a 100% stake in Epcogen, an engineering design and solutions company operating in the energy sector, for Rs 26.25 crore. An additional three-year earnout of Rs 7 crore based on performance is part of the acquisition deal.

The acquisition positions Axiscades to strengthen its presence in the energy markets of West Asia and North America.

Axiscades Technologies is an end-to-end engineering and technology solutions provider, serving various industries such as aerospace, defense, engineering, heavy engineering, automotive, energy, and semiconductor, catering to Global OEMs.

Over the past year, Axiscades Tech has shown significant growth, doubling investors’ money with a 167% increase, surpassing the benchmark Nifty’s 21% gain. In the last month alone, the stock has rallied by 33%, outperforming the Nifty.

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