Aditya Birla Group promoted aluminium manufacturer Hindalco Industries Ltd. approved plans to raise funds through a qualified institutional placement (QIP) that opened on Thursday.
The floor price for the QIP has been set at Rs 184.45 per equity share, a stock exchange filing by Hindalco said.
Hindalco may also offer a discount of up to 5 percent on the floor price.
The metal giant's closing price was Rs 189.45 on Thursday. The 12-month target price is Rs 209.8, according to the consensus of analyst data tracked by Bloomberg.
QIP is a capital-raising tool by which companies issue securities to a qualified institutional investor.
Hindalco had been eyeing to raise long term finance for a while now. In November, the company's board approved raising capital by way of "one or more public and/or private offering through equity/ equity linked instruments" up to an amount of Rs 5,000 crore.
An extraordinary general meeting was called for passing the resolution for issuing further securities.
On December 9, Hindalco shareholders passed the resolution with requisite majority voting in favour of raising capital by issuing securities.
Hindalco has been the second best performer on the Nifty Metal index, gaining 152.8 percent in the last 12 months. It has comfortably outperformed the index which has gained 84.7 percent in the same period.
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