Texmaco Rail is offering QIPs for Rs 750 crore

22 Nov 2023 , 02:44 PM

As the business has announced its Qualified Institutional Placement (QIP) to fund Rs 750 crore at a floor price of Rs 135.90 a share, shares of Texmaco Rail may continue to surge on November 22. A green shoe option worth Rs 200 crore is also included in the issue.

It is possible to issue shares to the public through qualified institutional placements without having to go through the typical regulatory compliance process. The only entity authorized to purchase QIPs are qualified institutional buyers, or QIBs. Underwriters are usually able to sell more shares than were originally issued when using the green shoe option.

The engineering and infrastructure company located in Kolkata intends to utilize the money acquired through the QIP issue for a number of purposes, such as financing capital expenditures, repaying loans, meeting working capital requirements, and general corporate purposes.

Shares of Texmaco Rail & Engineering Ltd. saw a 6.5 percent increase in the previous session before giving up some of the gain to close at Rs 149.90 on the National Stock Exchange. In 2023, the multibagger counter has already increased by over 150 percent.

The securities of Texmaco Rail have been placed under the long-term ASM (Additional Surveillance Measure) framework by the both BSE and NSE. Stocks are placed under either a short-term or long-term ASM framework by exchanges to warn investors about excessive share price volatility.

Texmaco Rail and Engineering reported a 70% year-over-year increase in consolidated net profit to Rs 20 crore for the quarter that concluded in September 2023. To Rs 810 crore, its consolidated total income increased 64% YoY. Additionally, the total operating revenue increased by 66% year over year to Rs 805 crore.

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