KEC International Sets Floor Price For Rs 4,500 Crore QIP

KEC International Ltd. sets Rs 976.64 per share as the floor price for the qualified institutional placement issue that opened on Tuesday. The company is looking to raise Rs 4,500 crore through the QIP.

The company may offer a discount of not more than 5% on the floor price of the issue, KEC International said in an exchange filing.

KEC International, in a board meeting held in July, approved a plan to raise up to Rs 6,000 crore through qualified institutional placement and issuance of non-convertible debentures. While it planned to raise Rs 4,500 through QIP, it also planned to issue non-convertible debentures worth Rs 1,500 crore through private placement in one or more tranches.

The company earlier this month secured new contracts worth Rs 1,423 crore for the design, supply, and installation of 380 kV transmission lines in Saudi Arabia. Following these orders, the company’s year-to-date order intake stands at over Rs 11,300 crore, a growth of approximately 75% compared to last year.

The company's net profit for the quarter-ended June more than doubled to Rs 88 crore over a year ago.

Revenue rose 6.3% year-on-year to Rs 4,512 crore. Operating income—or earnings before interest, taxes, depreciation, and amortisation—increased 10.6% to Rs 270 crore, while Ebitda margin was at 6%.

The stock rose as much as 5.09% during the day to Rs 993.25 apiece on the NSE. The stock closed 3.98% higher at Rs 982.75 per share. This compares with a 0.05% advance in the benchmark Nifty 50. It has risen 49.50% in the last 12 months and 62.29% year-to-date.