Pitti Engineering Raises Rs 359.99 Crore via QIP for Debt Repayment
Pitti Engineering raises Rs 359.99 crore via QIP, issuing 34,14,749 shares of Rs 5 face value at Rs 1,054.25 per share, boosting equity capital to Rs 1,773.24 lakhs for debt repayment and corporate purposes.
by Damodharan N
Updated Jul 13, 2024
Table of Content
Pitti Engineering, a leading engineering company in India, has successfully raised Rs 359.99 crore through a Qualified Institutions Placement (QIP). The fund-raising initiative saw the issuance of 34,14,749 equity shares of face value Rs 5 each at an issue price of Rs 1,054.25 per share, including a premium of Rs 1,049.25 per share.
The QIP opened on July 8, 2024, and closed on July 11, 2024, following approval from the company's Fund Raising Committee. The funds raised through this QIP will be used for repaying and/or prepaying certain borrowings and for other general corporate purposes.
Prominent domestic and global institutional investors, including SBI Mutual Fund, Aditya Birla Sunlife Mutual Fund, HSBC Mutual Fund, Franklin India Smaller Companies Fund, Motilal Oswal Small Cap Fund, and Kotak Mahindra Life Insurance Company, participated in the QIP.
As a result of this QIP, the paid-up equity share capital of Pitti Engineering has increased from Rs 1,602.50 lakhs, comprising 3,20,50,067 equity shares, to Rs 1,773.24 lakhs, comprising 3,54,64,816 equity shares.
Get the official announcement Here
Find the annexure A list of companies that participated in QIP Here
Market Reaction
Following Pitti Engineering's announcement on July 11, 2024, about raising Rs 359.99 crore through a Qualified Institutions Placement (QIP), the stock showed a positive market reaction. On the day of the announcement, the stock price increased, closing at Rs 1,175.25 with a higher trading volume of 81,304 shares.
The next day, the stock opened even higher at Rs 1,191.00, though it experienced some volatility, closing at Rs 1,152.45 with an increased trading volume of 91,210 shares. This indicates strong investor interest and confidence in the company's fund-raising move.
Get the share price on NSE Here
Pitti Engineering
Pitti Engineering Limited, founded in 1983 by Sharad B. Pitti, is India's largest manufacturer of electrical steel laminations, motor cores, sub-assemblies, die-cast rotors, and press tools.
The company, which is also the largest exporter of laminations from India, has diversified into castings, steel fabricated parts, and machined components, with plans to expand into forgings.
With an installed capacity of 32,000 TPA of laminations, soon to be expanded to 50,000 TPA, Pitti Engineering serves various end-user segments across eight countries. The company, employing over 2500 professionals, is listed on the BSE and NSE, and is known for its quality and industrial achievements, holding ISO certifications and various industry awards.
Pitti Engineering Raises Rs 359.99 Crore via QIP for Debt Repayment - FAQs
1. What did Pitti Engineering raise through the QIP?
Pitti Engineering raised Rs 359.99 crore.
2. How many equity shares were issued in the QIP?
34,14,749 equity shares were issued.
3. What was the face value of the equity shares issued?
The face value was Rs 5 per share.
4. What was the issue price per share in the QIP?
The issue price was Rs 1,054.25 per share.
5. When did the QIP open and close?
The QIP opened on July 8, 2024, and closed on July 11, 2024.
6. Who approved the QIP?
The company's Fund Raising Committee approved the QIP.
7. What will the funds raised through the QIP be used for?
The funds will be used for repaying or prepaying borrowings and other general corporate purposes.
8. Which prominent investors participated in the QIP?
Investors included SBI Mutual Fund, Aditya Birla Sunlife Mutual Fund, HSBC Mutual Fund, Franklin India Smaller Companies Fund, Motilal Oswal Small Cap Fund, and Kotak Mahindra Life Insurance Company.
9. How did the QIP affect the paid-up equity share capital of Pitti Engineering?
It increased from Rs 1,602.50 lakhs to Rs 1,773.24 lakhs.
10. How did the market react to the QIP announcement?
The stock price increased, indicating strong investor interest and confidence in the company's fund-raising move.