Himatsingka Seide Ltd. successfully raised Rs 400 crore via a qualified institutional placement, according to an exchange filing on Wednesday.
The firm issued the equity shares for a face value of Rs 5 each to eligible qualified institutional buyers for Rs 146.60 apiece. This included a premium of Rs 141.60 per equity share. It also included a discount of 5%.
The paid-up equity share capital of the firm increased from Rs 49.2 crore, consisting of 9.8 crore equity shares of face value of Rs 5 each, to Rs 62.87 crore consisting of 12.5 crore equity shares.
The proceeds from the QIP are to be mainly used by the company to repay and reduce its outstanding debt. It is expected to augment the firm's financial position and bolster its long-term growth prospects.
The issue of the QIP attracted considerable interest from marquee investors and was oversubscribed, according to the filing.
"We are pleased with the successful completion of the QIP," Managing Director Shrikant Himatsingka said. "This capital infusion aligns with our strategy to strengthen our balance sheet and position us for sustainable growth."
Shares of Himatsingka Seide closed 0.67% higher at Rs 169.14 apiece on the NSE, compared to a 0.51% decline in the benchmark Nifty 50. The stock has risen 0.83% on a year-to-date basis and 10.73% over the past 12 months.
An analyst tracking the company has a 'buy' rating on the stock, according to Bloomberg data.
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