PG Electroplast raises Rs 500 crore through QIP

PG Electroplast announced raising Rs 500 crore through QIP. A floor price of Rs 1,641.09 per share has been set for the qualified institutional placement.

The profits from the QIP would be used to pay for capex as well as working capital, sources told CNBC-TV18. Compared to its most recent closing price, the indicative issue price of Rs 1,560 per share represents a discount of up to 13%. The implied dilution from this QIP is most likely 14% of the current outstanding equity of this company. Promoters of the company held 61.2 percent of the shares as of the company's June quarter shareholding pattern.

A QIP is a method that a company uses to raise money. Only qualified institutional players are permitted to participate, unlike an IPO or an FPO.

Since January 1, PG Electroplast stock has given 61% returns, and over the last year, it has approximately 100% returns.

PG Electroplast provides original equipment manufacturers of consumer electronics products with manufacturing services. The company assembles compact fluorescent bulbs, DVD players, air conditioner subassemblies, and television sets and their components.

Source: Media Reports