Shares of Azad Engineering fell over 3% in morning trade following reports of the company’s plans to raise approximately Rs 700 crore through a qualified institutional placement (QIP). The company has set the issue price at Rs 1,280 per share, marking a 1.8% discount to Sebi’s floor price and a 5.6% drop from its last closing price.
As per reports, the fundraising initiative will lead to an 8.5% equity dilution, impacting shareholder value in the short term. As per regulatory norms, investors participating in the QIP will face a mandatory 60-day lock-in period before they can sell their shares. ICICI Securities is among the lead managers for this issue, ensuring a structured and efficient process.
Azad Engineering’s board approved the opening of the QIP issue on February 25, offering equity shares with a face value of Rs 2 each. The floor price has been set at Rs 1,303.08 per share, but the company retains the flexibility to offer up to a 5% discount at its discretion.
Azad Engineering shares opened at ₹1,350.00, reaching a high of ₹1,350.00 and a low of ₹1,310.00. The stock’s 52-week high stands at ₹2,080.00, while the 52-week low is ₹1,158.00.
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