PG Electroplast Closes Rs 1,500-Crore QIP, Sets Issue Price At Rs 699 Per Share

PG Electroplast Ltd. closed its qualified institutional placement offer on Monday, less than a week after launching the issue to raise up to Rs 1,500 crore.

The company has approved an issue price of Rs 699 apiece for around 2.14 crore equity shares that will be allotted to the eligible qualified institutional buyers, according to an exchange filing.

The issue price marks a discount of Rs 6.18, or 0.88%, against the QIP floor price of Rs 705.18 per share.

The consumer electronics company, whose stock has roared by over 260% in the year so far, launched the QIP on Dec. 4. The company intends to use the issue proceeds for investing in the subsidiaries PG Technoplast and Next Generation Manufacturers Pvt., as well as repayment and prepayment, in full or in part, of certain borrowings. Funds will also be used for general corporate purposes, it had stated.

The QIP issue came a month after PG Electroplast announced a foray into EV manufacturing with an agreement with Spiro Mobility, an affordable electric two-wheeler company based in Africa. As part of the agreement, the company will become an exclusive manufacturing partner of electric vehicles of Spiro Mobility in India.

In the quarter ended September 2024, PG Electroplast posted a 57.2% year-on-year jump in net profit to Rs 19.47 crore. The topline during the same period increased to Rs 671.30 crore, up 45.8% as compared to the year-ago period.

On Monday, the share price of PG Electroplast closed 5.35% higher at Rs 857 apiece on the NSE, compared to a 0.24% decline in the benchmark Nifty 50.

The stock has risen by 261.05% over the past 12 months and by 274.4% over the past 12 months.

Among the eight analysts tracking the company, six have a 'buy' rating on the stock, whereas one each recommends 'hold' and 'sell,' according to Bloomberg data. The average of 12-month analysts' price target implies a potential downside of 16.2%.