Ramkrishna Forgings, a prominent player in the industry, has taken a significant stride by launching a Qualified Institutional Placement (QIP) of shares, aiming to potentially raise a substantial amount of Rs 1,000 crore through this offering, as reported by CNBC TV18, citing reliable sources. The company made a late-night filing on November 8, confirming the approval for the initiation of the QIP. Setting a floor price of Rs 644.46 per share, Ramkrishna Forgings has paved the way for this strategic financial move.
A pivotal meeting to deliberate and announce the final issue price has been scheduled for November 13, indicating the company’s meticulous planning and strategic execution in this fundraising endeavor.
Notably, Ramkrishna Forgings had secured board approval back in October to raise up to Rs 1,000 crore through a QIP. However, the company refrained from divulging specific plans regarding the utilization of the proceeds from this fund-raising initiative, keeping investors intrigued about its future strategies and potential growth areas.
Prior to the QIP announcement, the company’s stock closed at Rs 689 on November 8, experiencing a marginal decline of 0.42 percent from the preceding day. Remarkably, over the past year, the stock has exhibited exceptional growth, nearly tripling from Rs 237, indicating the confidence and enthusiasm among investors regarding Ramkrishna Forgings’ potential.
As of 9:26 on November 9, the company’s shares were trading flat, displaying a minor dip of 0.48 percent, with the stock valued at ₹687.70.