Shares of PSP Projects witnessed a surge of around 4 percent in the opening trade on April 23. This upward movement came after the company announced the launch of a qualified institutions placement (QIP) to raise Rs 244 crore.
The company has set a floor price of Rs 682.59 per share for the QIP, although it may offer a discount of up to 5 percent to investors. The indicative issue price for the QIP is Rs 670.
As of 11:30 am, the shares of PSP Projects were trading 2.57% higher at ₹706.95 on the National Stock Exchange (NSE).
The floor price is the minimum price at which a company can offer its shares in a QIP. It is determined based on regulatory guidelines and is set in place to ensure that the company does not undervalue its shares.
On the other hand, the indicative price is the price at which the company intends to offer its shares during the QIP. It serves as an initial estimate to give potential investors an idea of the likely pricing of the offering.
PSP Projects’ board gave the go-ahead for the QIP on February 9, and the shareholders’ approval through a postal ballot came in on April 4. The company’s fund-raising committee met on April 22 and approved the opening of the issue, the floor price, and the preliminary placement document.
The launch of the QIP has been well-received by investors, as evidenced by the positive movement in PSP Projects’ share price. The funds raised through this placement will likely be utilized for various corporate purposes, including potential acquisitions, expansions, or debt repayment.
