PG Electroplast board approves raising Rs 1,500 crore via QIPs

Leading Indian and international brands can get everything they need from PG Electroplast Limited (PGEL). Established in 2003 as the principal enterprise of the PG Group, PGEL is a trailblazer and top supplier of electronics manufacturing services in India. Plastic Injection molding, Original Design Manufacturing (ODM), and Original Equipment Manufacturing (OEM) are our expertise areas. Our team of over 3,800 employees is diverse and we serve over 45 prominent Indian and international brands in a range of industries, including consumer electronics, bathroom fittings, automotive, and consumer durables in India. Our ability to ramp up capacity, diversify our offerings into newer segments, initiate backward integration, and mobilize investments for research and development of new products has helped us establish a strong brand reputation in a short amount of time.

Raise Rs. 1500 crore through QIP, PG Electroplast Ltd

On Saturday, October 19, PG Electroplast Ltd., a contract manufacturer in the appliances and consumer electronics sector, declared that its board of directors had accepted a plan to raise up to Rs. 1,500 crore through the Qualified Institutions Placement (QIP) of equity shares or other convertible securities.

As per the stock exchange filing, “…issuance of equity shares or other convertible securities by way of Qualified Institutions Placement, for an aggregate consideration not exceeding Rs. 1,500 crores (Rupees Fifteen Hundred Crores only)…” complies with the applicable laws, which includes the SEBI.

PG Electroplast Limited’s earnings

The robust momentum in RACs—which generate 48% of FY24 revenue—and washing machines—which generate 11% of revenue—benefits PG Electroplast significantly.

Furthermore, the brokerage stated that in the medium run, the company can strategically diversify and scale up in high-growth electronics and IT hardware categories because of a favourable policy environment.

The stock of PG Electroplast Ltd. dropped over 4% today

The stock of PG Electroplast Ltd. is currently up more than 5% on Friday and is trading at Rs. 588.00 per share, which is close to 5%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.