Pondy Oxides Raises Rs 175 Crore Through QIP

Pondy Oxides and Chemicals Ltd. has raised Rs 175.44 crore through its qualified institutional placement, that closed on Friday. The company allotted the shares at an issue price of Rs 860 per share.

The producer of lead, lead alloys, aluminum, copper and plastic products allotted 20.34 lakh shares to eligible qualified institutional buyers, according to the exchange filing on Friday. The firm issued the shares at Rs 860 per share, which marked a discount of 4.75% against the floor price of Rs 902.93 that the company had announced on Dec. 17.

The company had, earlier in October, announced that it will raise Rs 250 crore through the QIP route in one or more tranches.

The company had also announced a stock split with Oct. 16 as the ex-date. After the stock split, the face value of the shares was halved from Rs 10 to Rs 5.

Pondy Oxides' consolidated net profit nearly tripled to Rs 15.26 crore for the quarter ended September, compared to Rs 5.69 crore in the same quarter of the previous fiscal year.

The company's revenue rose by 45.9% year-on-year in July-September, reaching Rs 579.118 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 82% year-on-year to Rs 28.79 crore. The Ebitda margin expanded to 5% from 4% in the same period of the previous fiscal.

Shares of Pondy Oxides on Friday closed 2.16% lower at Rs 907.65 apiece on the National Stock Exchange, compared to a 1.52% decline in the benchmark Nifty 50. The company's stock has risen by 261% on a year-to-date basis, and by 322% over the past 12 months.