Ramkrishna Forgings Raises Rs 1,000 Crore Through QIP
The Kolkata-based company, in a statement, said it has approved the allotment of over 1.62 crore equity shares of face value of Rs 2 at an issue price of Rs 614 apiece.
Leading forgoing company, Ramkrishna Forgings Ltd, on Wednesday announced that it has raised Rs 1,000 crore through a qualified institutional placement (QIP) of its equity shares.
The Kolkata-based company, in a statement, said it has approved the allotment of over 1.62 crore equity shares of face value of Rs 2 at an issue price of Rs 614 apiece.
The first-ever QIP of the company witnessed a strong response from marquee domestic and foreign institutional investors, it said.
Investors such as Nomura, SmallCap World Fund from Capital Group and BNP Paribas took part in the issue and were allocated up to 71.22% of the offered equity shares.
"We get a manifold response to the QIP of Rs 1,000 crore. We welcome prominent global investors such as Nomura, SmallCap World Fund from Capital Group and BNP Paribas," Naresh Jalan, Managing Director of Ramkrishna Forgings, said.
This fundraising exercise will enable the company to embark on the next phase of its growth journey, to reduce debt and advance in manufacturing initiatives, he said.
The company will execute a greenfield forged wheel plant in a joint venture with Titagarh Rail Systems at an estimated cost of Rs 1,200 crore.
The new facility will produce wheels for the Indian Railways' captive consumption and export.