PG Electroplast shares soared on December 5, climbing 6% to touch a record high of ₹820.75 after the company announced the launch of a Qualified Institutional Placement (QIP) worth up to ₹1,500 crore. The stock has gained significant momentum, rising 16% in the past week alone.
At 9:57 am, shares were trading at ₹812.05 on the NSE, slightly below their intraday peak. The QIP offers shares at a floor price of ₹705.18 each, which represents a discount of nearly 9% to the prior session’s closing price. The issuance is expected to result in a 6.7% equity dilution. Proceeds from the QIP will be used for working capital, loan repayments, and general corporate purposes.
The company’s board had approved the share placement on October 19 and shareholders gave their nod on November 13. Media reports suggested the indicative issue price for the QIP is expected in the range of ₹690 to ₹699 per share.
PG Electroplast management also declared progress regarding the ₹ 380 crore capital expenditure contemplated this year. Of this, ₹ 165 crore is for investments to be made in product capacity expansion through new plants and machinery, while ₹ 185 crore is being used for land acquisition and infrastructure development. ₹ 20 crore will be provided for maintenance and the small investments being made in the plastic components segment comprising sanitary ware. Part of such investments had already been started, it had declared in November.
Strong investor interest and ambitious expansion plans hint at strong growth prospects, placing PG Electroplast among the top positions of the electronic manufacturers.
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Source: Moneycontrol
News Desk
