Auto component maker Minda Industries launches QIP to raise Rs700 cr
Premium- The company has fixed a floor price of Rs734.84 per share as per a sebi formula
Mumbai: Auto components maker Minda Industries Ltd on Monday said that it has launched a so called qualified institutional placement (QIP) to raise capital from institutional investors.
The company plans to raise up to Rs700 crore through the QIP, according to deal terms seen by Mint. Equirus Capital is advising the company on the share sale.
The company has fixed a floor price of Rs734.84 per share as per a sebi formula. Companies are allowed to offer up to 5% discount to investors on the floor price
According to the deal terms, the indicative issue price has been set at Rs720.00 per share, a discount 4.89% to the last closing price of Rs757 apiece on NSE.
"Subject to compliance with applicable laws and regulations, the Company proposes to utilize the Net Proceeds (i) to meet capital expenditure requirements for ongoing and future projects; (ii) to sustain growth in the business; (iii) redemption of preference shares, if any (iv) for business expansion and to improve the financial leveraging strength of the Company; (v) towards working capital requirements; (vi) towards debt pre-payment and/or repayments including any existing or future debt incurred for any purpose including for paying off any liability; (vi) for investments including amongst others, in subsidiary companies and/or Joint Ventures and/or Associates; (vii) to meet the current operational expenses," the company said in an offer document filed with the stock exchanges.
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