The board of PG Electroplast Ltd. approved the opening of its qualified institutional placement to raise Rs 1,500 crore on Wednesday. The floor price has been set at Rs 705.18 per share, a discount of 8.5% to the last closing price on the NSE.
The company may, at its discretion, offer a discount of no more than 5% on the floor price for the QIP, an exchange filing said.
The proceeds from the share sale will be used to invest in subsidiaries PG Technoplast and Next Generation Manufacturers Pvt., as well as repayment and prepayment, in full or in part, of certain borrowings. Funds will also be used for general corporate purposes.
JM Financial Consultants Pvt. is the sole merchant banker for the deal.
PG Electroplast, an integrated EMS player, last month announced a foray into EV manufacturing with an agreement with Spiro Mobility, an affordable electric two-wheeler company based in Africa. As part of the agreement, the company will become an exclusive manufacturing partner of electric vehicles of Spiro Mobility in India.
The Spiro Mobility deal is likely to add Rs 500 crore to the company's revenue by the financial year 2026–27.
In November this year, the company's Managing Director, Vikas Gupta, told NDTV Profit, “We are looking at a revenue of around Rs 500 crore by the second year of operation of this EV manufacturing. Going forward, we are looking at localising much more content domestically. Let us see how it goes. We are very bullish on this category.”
Shares of PG Electroplast closed 1.47% higher at Rs 771 apiece on the NSE on Wednesday, ahead of the QIP announcement, compared to a flat benchmark Nifty 50.
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