Kalpataru Projects Share Price Falls After Raising Rs 1,000 Crore Via QIP At Discount

Kalpataru Projects International Ltd.'s stock fell over 2% on Wednesday after raising Rs 1,000 crore via qualified institutions placement, at a discount.

The Engineering, Procurement and Construction company issued 83.26 lakh equity shares at Rs 1,201 apiece. The price was set at a discount of 10.3%.

The QIP received response from investors including domestic mutual funds, foreign investment funds and insurance companies, according to the exchange filing. This is the first equity raise by KPIL in over a decade.

The paid-up equity share capital of the company increased from Rs 32 crore to Rs 34 crore, pursuant to the allotment of equity shares in the issue, according to the company.

According to the filing, the QIP Committee at its meeting held on Tuesday had approved the issue and issue price of the QIP was Rs 1,201 per equity share, aggregating to Rs 999 crore.

Kalpataru Projects International share price fell as much as 2.57% during the day to Rs 1,305 apiece on NSE. It pared loss to trade 1.76% lower at Rs 1,315 apiece, compared to a 0.31% decline in the benchmark Nifty 50 as of 10:53 a.m.

The stock has risen 97.28% in the last 12 months and 85.7% on a year-to-date basis. The relative strength index was at 62.2.

Of the 16 analysts tracking Kalpataru, 14 have a 'buy' rating on the stock and two recommend a 'hold', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 1,449.9, implying an upside of 10.2%.