Bharat Forge Ltd. raised Rs 1,650 crore via qualified institutional placement of shares on Monday. The QIP opened for bidding last week.
The board approved the allotment of 1.25 crore shares of face value of Rs 2 at an issue price of Rs 1,320 apiece, a discount of 0.27% to the floor price of Rs 1,323.54, according to an exchange filing.
The placement document has been adopted, and the board has approved and finalised the confirmation of the allocation note to be sent to eligible QIBs.
The company will intimate stock exchanges about the list of investors.
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 0.61% higher at Rs 1,363.2 apiece on the BSE before the announcement, compared to a 0.25% decline in the benchmark Sensex.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
