Gujarat Toolroom Ltd.'s qualified institutions placement for raising Rs 95.7 crore via equity shares will launch on Thursday.
The development follows the company's fund-raising committee giving the approval to raise the funds by issuing equity shares at a floor price of Rs 13.98 apiece, according to an exchange filing on Wednesday.
The relevant date or record date for the purpose of the issue is Dec. 18. The floor price of the issue has been determined based on the pricing formula prescribed under the SEBI ICDR Regulations, it said.
However, the company, at its discretion, may offer a discount of not more than 5% on the floor price for the issue. The Issue price will be determined by the company in consultation with the lead manager for the issue.
According to the preliminary placement document attached with another filing, the company will issue up to 7,19,24,810 equity shares with a face value of Re 1 each at a price of Rs 13.30 per equity share, including a premium of Rs 12.30 per equity share, aggregating to approximately Rs 95.7 crore.
The company added that the trading window for the company's securities will be closed with immediate effect, till 48 hours after closure of issue and allotment of shares, for all "designated persons" as defined in the company's Prevention of Insider Trading Code of Conduct.
Earlier, in July, the board had approved raising of funds by way of a QIP by issuing equity shares for an amount up to Rs 200 crore. While the fundraise could be done in one or more tranches, it should be in accordance with the provisions of the Companies Act and the Securities and Exchange Board of India Regulations, the board had said then.
Shares of Gujarat Toolroom closed 1.35% lower at Rs 13.89 apiece on the BSE, compared to a 0.62% decline in the benchmark Sensex.
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