Azad Engineering has launched a qualified institutional placement (QIP) to raise around ₹700 crore, people in the know told CNBC-TV18.

The issue price is ₹1,280 per share, which is a discount of 1.8% to SEBI’s floor price and 5.6% to its last closing price, the sources added.

With this, the company is looking at diluting 8.5% equity.  The lock-in period for the QIP is set to 60 days for promoters.

ICICI Securities is among the book running lead manager for the issue, sources said.

The company said its board authorised the opening of the issue on February 25 for the QIP of equity shares of face value of ₹2 each to eligible qualified institutional buyers. It also approved the floor price of ₹1,303.08 per equity share for the issue.

It added that the company may, at its discretion, offer a discount of up to 5% on the floor price calculated for the issue.

Azad Engineering shares ended 2.65% higher at ₹1,352 apiece on Tuesday, February 25. The stock has fallen 26.22% this year, so far.

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