Shares of Hitachi Energy India Ltd fell over 2% on March 11 after the company announced the launch of a Qualified Institutions Placement (QIP) of equity shares, following approval from its Fund Raise Committee on March 10, 2025.
The base issue size for the QIP stands at ₹2,000 crore, with an option to increase it to ₹3,000 crore, as per sources cited by CNBC-TV18. The company has set a floor price of ₹12,112.50 per share, reflecting a 4% discount to the last closing price of ₹12,670 per share on NSE. The indicative issue price could be up to 5% lower than the floor price, potentially placing it at ₹11,507 per share, marking a 9% discount to the last traded price.
Dilution and fund utilization
The QIP could result in a dilution of up to 6.15% at the indicative issue price. The company aims to utilize the funds for capital expenditure, working capital requirements, and general corporate purposes. The preliminary placement document and application form have been adopted, with bids from qualified institutional buyers (QIBs) expected. The final issue price will be determined in consultation with the book-running lead managers.
Goldman Sachs bullish on Hitachi Energy
Despite the near-term decline, Goldman Sachs remains bullish on Hitachi Energy, citing its strong order pipeline in high-voltage direct current (HVDC) projects as a key growth driver. The brokerage highlighted the broader infrastructure spending wave in India, estimating that grid capital expenditure (capex) will reach $100 billion by FY32 and could further expand to $500 billion by FY50. Given Hitachi Energy’s dominant position in the sector, analysts believe the company is well-placed to capitalize on this long-term investment cycle.
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