Shares of Wheels India Ltd and Inox Green Energy Services Ltd experienced a notable rise in early trading on Friday following the announcement of their respective Qualified Institutional Placements (QIPs). The fundraising initiatives are set to collectively bring in approximately ₹550 crore for the two companies.
Companies Launch QIPs to Boost Capital
Wheels India has initiated a QIP to raise ₹250 crore, while Inox Green Energy Services is targeting ₹300 crore through its issue. On Friday, Wheels India shares climbed 4.94%, reaching a high of ₹2,291.95 from its previous close of ₹2,184.15. Similarly, Inox Green Energy Services saw its shares increase by 1.92%, touching ₹177.60 compared to its prior close of ₹174.25.
Inox Green Energy Services QIP Details
Inox Green Energy Services' Operations Committee officially approved the opening of its QIP on September 24, setting the floor price at ₹174.36 per share. This pricing adheres to the formula prescribed under SEBI's ICDR Regulations. The company retains the discretion to offer a discount of up to 5% on this floor price.
The QIP aims to raise ₹300 crore, with a base offer of approximately 1.81 crore shares and an additional option to issue 60.4 lakh shares. Emkay Global Financial Services is acting as the bookrunner for this issue. The proceeds from Inox Green's QIP are earmarked for investment in its subsidiary, Vibhav Energy, specifically for the part-payment related to the acquisition of Wind World (India)'s operations and maintenance business. The final issue price will be determined in consultation with the book-running lead manager. The trading window for Inox Green was closed from September 24 and will reopen 48 hours after the issue price is finalized.
Wheels India QIP Overview
Concurrently, Wheels India's Fundraise Committee approved a floor price of ₹2,197.10 per share for its QIP. The company plans to issue up to 12 lakh shares, with an indicative price set at ₹2,088. A discount of up to 5% on the floor price may also be offered, subject to regulatory compliance.
The funds generated from Wheels India's QIP are intended for the repayment or prepayment, either partially or in full, of certain outstanding borrowings. ICICI Securities is the sole lead manager for this issue, and the final issue price will be decided in consultation with them. Wheels India's Fundraise Committee is scheduled to meet on September 25 to finalize and approve the issue price, including any permissible discounts under SEBI ICDR Regulations. The company's trading window was closed immediately for the QIP and will remain shut until September 26.