Shares of Astra Microwave Products Ltd. advanced on Monday as the company raised Rs 275 crore through a qualified institutional placement issue.
The indicative price of the QIP issue was Rs 270 per share. The company develops microwave systems used in the defence, space, meteorology, and telecommunication industries. The board of directors of the company allotted 83.33 lakh shares with a face value of Rs 2 each to eligible institutional buyers.
After concluding the QIP, the paid-up equity share capital of the company increased from Rs 17.32 crore to Rs 18.98 crore.
Out of the 12 qualified institutional buyers, key investors include Nippon India Mutual Fund, Kotak Mahindra Mutual Fund, Tata AIA Life Insurance Ltd., and India Infoline Finance Ltd. The key foreign investors include Societe Generale.
Shares of Astra Microwave Products Ltd. rose 1.21% to Rs 322.45 apiece, compared to a 0.75% advance in the benchmark NSE Nifty 50 as of 9:55 a.m.
The stock rose as much as 1.98% in pre-open trade, the most in over 13 weeks since May 4. The relative strength index was at 81, implying that the stock may be overbought.
Two analysts tracking the company maintain a 'buy' rating on the stock, as per Bloomberg data. The average calculated from the 12-month price target given by analysts implies a potential upside of 15%.
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