Gravita India Share Rose Over 5%: Launches QIP and Set Floor Price at ₹2,206.49

On December 16, Gravita India Ltd, a prominent recycling player, launched a qualified institutional placement (QIP) to raise ₹750 crore, with an option to increase the issue size. The company has received shareholder approval to raise up to ₹1,000 crore through this offering.

The floor price for the QIP has been set at ₹2,206.49 per share, which is approximately 1.2% below the stock’s current market price. According to the regulations, the company may offer a discount of no more than 5% on the floor price.

As per reports, Gravita India will offload 35.78 lakh shares as per the term sheet. There is also an upsize option available, which could increase the total issue size beyond the initial ₹750 crore.

Fundraising Plans and Utilisation

In October, Gravita’s board approved raising up to ₹1,000 crore through the sale of shares, equity-linked instruments, or debt, in one or more tranches. The funds will be raised via private placement, further public offerings, preferential issues, or rights issues. The proceeds will be used for repaying outstanding borrowings, meeting working capital needs, and covering general corporate purposes.

The lock-in period for the QIP is set at 90 days for all investors, with a shorter 30-day lock-in for the promoter and promoter group.

Gravita India’s Latest Financial Performance

Gravita India reported a 26.3% year-on-year (YoY) increase in net profit, which stood at ₹72 crore for Q2 FY24 (ending September 30). This compares to ₹57 crore in the same quarter of the previous fiscal year. Revenue from operations rose by 11%, reaching ₹927.4 crore, up from ₹836.2 crore in the corresponding period of FY23. However, EBITDA declined by 13%, dropping to ₹63.4 crore from ₹72.8 crore in Q2 FY24.As of the September 2024 quarter, Gravita India’s promoters held a 63.37% stake in the company.

On December 17, 2024, Gravita share price opened at ₹2,286.00 and touched the day high of ₹2,385.95 at 09:30 AM.

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.