Gravita India Opens Rs 750-Crore QIP, Fixes Floor Price
The launch of QIP comes around two months after Gravita India received board nod to raise upto Rs 1,000 crore through multiple securities.
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Gravita India Ltd. on Monday announced the launch of its Rs 750-crore qualified institutional placement offer, nearly two months after it received board nod to raise up to Rs 1,000 crore through the issuance of multiple securities.
The floor price for the QIP has been fixed at Rs 2,206.49 per share, which is around 1.2% lower than the stock's current market price.
The lead producer, as per the regulations, may offer a discount of not more than 5% on the floor price calculated for the QIP, according to the filing.
The company will offload 35.78 lakh shares, according to the term sheet viewed by NDTV Profit. There is also an upsize option, which could increase the overall issue size.
The indicative issue price for the QIP is Rs 2,096.2 per share, which could mark a 6.1% discount to the last closing price of Rs 2,232.9 per share.
Motilal Oswal Investment Advisors Ltd and Kotak Mahindra Capital Co. Ltd are the book running lead managers for the QIP.
In October, Gravita's board approved fund raise of upto Rs 1,000 crore through share sale or equity-linked instruments or debt issue in one or more tranches. The securities will be issued via private placement, further public issue of equity or debt securities, preferential issue or a rights issue, the company had then stated.
Gravita is one of Axis Securities Ltd.'s top picks for December 2024 as it is well positioned to capitalise on the industry growth. The brokerage has set a target price of Rs 3,000 with an upside of 38%. It expects the company to deliver strong performance on the back of dominant share in growing market, steady improvement in profitability, regulatory tailwinds and expanding offerings.
Gravita is one of India's largest lead producers. The company's business is organised across four specialised verticals, including lead recycling, aluminium recycling, plastic recycling, and turnkey projects.
Shares of Gravita on Monday closed 1.69% higher at Rs 2,232.9 apiece on the NSE, compared to a 0.4% decline in the benchmark Nifty 50. The stock has risen 108.8% in the last 12 months and 106.2% on a year-to-date basis.
All six analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 34.7%.
