Shares of generator manufacturer TD Power Systems Ltd. will be in the spotlight during Thursday's market session after the company announced the launch of its Qualified Institutions Placement (QIP) on Wednesday to raise up to Rs 600 crore. In a regulatory filing with stock exchanges, the company confirmed that its Fund Raising Committee approved the opening of the issue and fixed the floor price at Rs 775.35 per equity share. In line with SEBI regulations, TD Power Systems noted in its exchange filing that it may, at its discretion, offer a discount of up to 5% on the floor price to eligible institutional buyers.
According to sources familiar with the transaction, the issue size is pegged at up to Rs 600 crore, with an indicative pricing of around Rs 775.35 per share, representing an approximate 5% discount to the current market price (CMP). This would put the potential discounted price at about Rs 736.58 per share.
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The sources further indicated that a 30-day lock-in period will apply to both the company and its promoters following the completion of the specific placement, while Motilal Oswal is acting as the broker and book running lead manager to steer the fundraise. The proceeds from the institutional placement are slated to strengthen the company's capital structure and fund ongoing growth and working capital requirements. Also, the final issue price will be determined by the company's board/committee in consultation with the book running lead manager after the bidding process concludes.
The board approved the fund-raising proposal on August 14, while shareholders approved a special resolution at an extraordinary general meeting on September 10. The company said its trading window had already been closed until 48 hours after the conclusion of the board meeting to consider unaudited financial results for the period ended September 30, 2026. Shares of TD Power Systems settled 0.49% higher at Rs 820 on October 7.
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