Ramkrishna Forgings Initiates Rs 1,000 Crore QIP, Eyes Debt Reduction

9 Nov 2023 , 01:36 PM

Ramkrishna Forgings launches Qualified Institutional Placement (QIP) of shares, aiming to raise Rs 1,000 crore, as reported by CNBC TV18. 

The late-night exchange filing on November 8 confirmed approval for the QIP launch, with a floor price set at Rs 644.46 per share. A meeting to discuss and announce the issue price is scheduled for November 13.

In October, the board approved raising up to Rs 1,000 crore through a QIP, without specifying the fund utilization plans. The stock closed at Rs 689 on November 8, a 0.42% decline from the previous day, and has nearly tripled in the last year from Rs 237.

The funds raised may be utilized for debt reduction and working capital requirements, with an indicative price set at Rs 614 per share, reflecting an 11.1% discount from Wednesday’s closing price. In Q2FY24, the auto ancillary manufacturer reports a 22.26% year-on-year increase in net profit to Rs 82.20 crore.

Net sales for the same period grow by 19.05% to Rs 981.49 crore in September 2023. Earnings before interest, taxes, depreciation, and amortization (EBITDA) rise by 19.07% YoY to Rs 209.77 crore for the September 2023 quarter.

For feedback and suggestions, write to us at [e-mail]