CG Power and Industrial Solutions Limited has announced plans to raise up to ₹3,500 crore through a Qualified Institutional Placement (QIP). This decision, taken during the company’s Board of Directors meeting on October 21, 2024, is subject to the approval of shareholders and relevant regulatory bodies.
The move to raise funds is part of CG Power’s strategy to strengthen its financial position and fund future expansion projects. The equity shares and/or other eligible securities will be issued as part of this fundraising initiative, demonstrating the company’s focus on securing capital for long-term growth.
In addition to the fundraising decision, CG Power reported its Q2 FY25 results, showcasing a 20.55% year-on-year (YoY) growth in revenue. The company’s revenue for the quarter stood at ₹2,412.69 crore, compared to ₹2,002.58 crore in Q2 FY24. However, despite the revenue growth, CG Power saw a 9.90% decline in net profit, which fell to ₹219.63 crore in Q2 FY25 from ₹243.76 crore in the same quarter last year.
This mixed performance reflects the company’s strong market presence but also highlights the challenges it faces in maintaining profitability amid rising costs and market conditions.
The upcoming QIP is expected to provide CG Power with the financial flexibility needed to navigate these challenges and invest in future growth opportunities.
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