KEC International Raises Rs 870 Crore Via QIP

KEC International Ltd. has raised Rs 870 crore through a qualified institutional placement offer that it launched this week, an exchange filing said on Thursday.

The company had opened the QIP on Sept. 24 and closed on Thursday. Under the issue, it allocated a total of 91.1 lakh shares to qualified institutional buyers at an issue price of Rs 955 each.

The issue price marked a discount of 2.22% as against the floor price of Rs 976.64 per share fixed for the QIP.

KEC International, which is a major manufacturer of electric power transmission towers, received a nod from its board of directors in July to raise up to Rs 6,000 crore in one or more tranches.

Of this, the company planned to raise Rs 4,500 crore through the QIP route and another Rs 1,500 crore by issuing non-convertible debentures.

Earlier, in September, KEC International 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 crossed Rs 11,300 crore.

In the quarter ended June 2024, the Mumbai-headquartered firm's net profit doubled to Rs 88 crore over a year ago, while revenue rose 6.3% year-on-year to Rs 4,512 crore.

Shares of KEC International closed 0.37% higher at Rs 1,022.45 apiece on the NSE on Thursday, compared to a 0.81% climb in the benchmark Nifty 50. Year-to-date, the stock is up 73.5%.

Out of the 24 analysts tracking the company, 15 have a "buy" rating on the stock, five suggest a "hold," and four recommend a "sell," according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 7.8%.