Bharat Forge Ltd. launched a qualified institutional placement on Wednesday at a floor price of Rs 1,323.54 per equity share, according to an exchange filing.
The QIP's indicative offer price is ranged between Rs 1,290 and 1,320, that represents a discount of 4.2-6.38% to the last closing price on the NSE. The company aims to raise Rs 1,650 crore via the share sale.
In a meeting, the investment committee–strategic business approved the proposal to raise funds via the QIP route after an approval by the board of directors in August and the shareholders' resolution in November, the forging company said.
The floor price is at a discount of 3.5% from the stock's close at Rs 1,377.90 apiece on the National Stock Exchange.
Bharat Forge may, at its discretion, offer a discount of not more than 5% on the floor price for the issue. The issue price will be determined by the company in consultation with the book-running lead managers, according to the filing.
The company will file the preliminary placement document with BSE Ltd. and the NSE on Wednesday. The trading window for dealing in the securities of the company had already been closed from Sept. 25 till further notice for the purpose of the QIP.
In the quarter ended September, Bharat Forge's consolidated net profit jumped 14% to Rs 243 crore from Rs 214 crore in the same quarter in the previous financial year. Revenue fell 2.3% to Rs 3,689 crore from Rs 3,774 crore.
Motilal Oswal Financial Services had said the overall performance of the company in the second quarter "was below our estimates" due to lower-than-estimated growth in the domestic business and a decline in exports.
However, it pointed out that the slowdown in its core segments —commercial vehicles and passenger vehicles in both domestic and exports — was broadly offset by "strong growth in defence and JS AutoCast segments".
Shares of Bharat Forge closed 2.04% higher at Rs 1,377.90 apiece on the NSE before the announcement, compared to a 0.04% advance in the benchmark Nifty.
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