Shares of Gujarat Toolroom Ltd. declined by 2% on Tuesday to ₹13.55 after the company announced the launch of its Qualified Institutions Placement (QIP). The fundraising aims to generate approximately ₹95.7 crore through the issuance of equity shares to institutional investors.

Key Details of the QIP:

  1. Floor Price: The issue has been priced at ₹13.98 per share as per SEBI’s ICDR regulations. The company may offer a discount of up to 5% at its discretion.
  2. Issue Size: Gujarat Toolroom will issue up to 7,19,24,810 equity shares, with a face value of ₹1 each, priced at ₹13.30, inclusive of a premium of ₹12.30 per share.
  3. Trading Window: The trading window for the company’s securities has been closed with immediate effect and will remain so for 48 hours post-allotment.
  4. Purpose: The funds raised will support the company’s financial goals and expansion plans.

Market Reaction:

Shares traded lower during Tuesday’s session, reflecting a subdued investor sentiment towards the fundraising. The decline comes after a challenging year for the company, with its stock showing a significant drop of over 65% in the past year.

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