PSP Projects shares rise over 4% on board nod to raise ₹244 crore via QIP
Upstox
2 min read • Updated: April 23, 2024, 3:27 PM
Summary
PSP Projects QIP proposal was initially approved by the Board of Directors in February followed by a go ahead from the shareholders earlier this month.
PSP Projects shares jumped more than 4% on the NSE on Tuesday, April 22, after the company announced raising ₹244 crore through a qualified institutions placement (QIP) route.
The construction firm's shares opened at ₹698 apiece on the NSE and rallied as much as 4.43% to hit a high of ₹719.85 apiece on the NSE in morning trade following the announcement of the QIP launch.
Bidding for the QIP of PSP Projects opened on Tuesday after the initial approval by the company's board on February 9 followed by shareholders' nod earlier this month.
In a stock exchange filing on April 22, PSP Projects informed that the floor price of the QIP has been set at ₹682.59 per share of face value of ₹10 each. The company, however, may offer a discount of up to 5%, bringing the indicative price to around ₹670. The floor price for the QIP was determined at PSP Projects' Fund Raising Committee meeting on April 22.
The floor price, determined based on regulatory guidelines, is the minimum price the company can offer its shares. It is used to ensure that the company doesn’t undervalue its prices. The indicative price is the price the company intends to offer shares during a QIP.
It is an estimate to give investors an indication of the possible pricing of the QIP.
"Pursuant to Regulations 176(1) of the SEBI ICDR Regulation, the company may, at its discretion, offer a discount of not more than 5% on the floor price calculated for the QIP,” PSP Projects said.
PSP Projects is yet to disclose how it plans to use the money raised through the QIP.
Incorporated in 2008, PSP Projects Limited is a construction company offering a diversified range of construction and allied services across industrial, institutional, government, and residential projects in India.
It provides services across the construction value chain—from planning and design to construction and post-construction activities. This included MEP work and other interior fit-outs to private and public sector enterprises.
Shares of PSP Projects Limited were trading at ₹698 apiece, up 1.41%, on the NSE at 3:15 pm.