Gravita India Ltd shares gained nearly 3% on Friday, December 20, after the company approved the qualified institutional placement (QIP) of equity shares to raise an amount aggregating to ₹1,000 crore.

The recycling player announced on Friday that its Fund Raising Committee approved issuing and allotting 47.7 lakh equity shares of the company to 54 eligible Qualified Institutional Buyers (QIBs) for an aggregate amount of ₹1,000 crore.

The company’s Fund Raising Committee, in a meeting held on December 19, approved to issue 47,70,537 equity shares to eligible QIBs at a price of ₹2,096.2 apiece- a price which includes a premium of ₹ 2,094.2 per piece, along with a discount of ₹110.29, which is 5% of the floor price.

Following the allotment of the said equity shares under the QIP, Gravita India’s paid-up equity share capital has increased from ₹13.8 crore to over ₹14.76 crore.

As per the information provided by the company to the stock exchanges, Oxbow Master Fund Ltd and Mirae Asset Mutual Fund, each have been allotted 12.4% of the total equity shares offered in the issue, constituting 5,91,546 shares each.

In a report posted on Monday, CNBC-TV18 stated that the funds raised through the said QIP will be used for repaying outstanding borrowings of the company, working capital needs, and general corporate purposes. Kotak Mahindra Capital and Motilal Oswal Investment Advisors are acting as the book-running lead managers (BRLMs) for the issue.

It further stated that the lock-in period for the QIP is set at 90 days for other investors and 30 days for the promoter and promoter group.

For the quarter ended September 30, 2024, Gravita India reported a net profit of ₹72 crore, rising 26.3% year-on-year (YoY) compared to a net profit of ₹57 crore posted in the corresponding quarter of the previous fiscal.

The company’s revenue from operations increased 11% to ₹927.4 crore against ₹836.2 crore in the corresponding period of the preceding fiscal. At the operating level, EBITDA (earnings before interest, taxes, depreciation, and amortization) dipped 13% to ₹63.4 crore in the second quarter of this fiscal over ₹72.8 crore in the corresponding period of FY24.

Shares of Gravitas India Ltd were seen trading 1.07% higher at ₹2431.90 a piece on the BSE at 11 am after touching an intraday high of ₹2474.05.

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