Transformers and Rectifiers India allots 75 lakh shares to raise ₹500 crore via QIP route

In an exchange filing on Friday, June 14, the company said that it had issued 75,18,796 equity shares of face value of ₹1 each at a price of ₹665 per share to QIBs, aggregating to ₹500 crore. The issue price of shares at ₹665 was at a discount of ₹34.95 per share to the floor price of ₹699.95 per share.

Among the institutional investors who have been allotted more than 5% of the equity shares offered in the issue, Nomura and Goldman Sachs were allotted 11,27,819 shares each, equivalent to 15% of total issue size.

HSBC Midcap Fund was allotted 7,74,778 shares, or 10.30% of total issue size.

Max Life Insurance Company received 4,21,052 shares, or 5.60%, while Ask Golden Decade Fund received 4,01,124 shares, or 5.33% of the total issue size.

Transformers and Rectifiers India intends to use the proceeds of the issue to fund its capital expenditure plans. Parts of the proceeds will also be used to meet working capital requirements, repaying loans and for the general corporate purposes.

The company's allotment committee authorised the opening of the issue on June 10 at a floor price of ₹699.95 per equity share.

The board of directors of the company had proposed fundraising through QIP at its meeting held on April 8, 2024. The proposal was approved by the shareholders of the company in the annual general meeting on May 13.

Companies raise funds through the QIP route by issuing equity shares to select investors known as qualified institutional buyers (QIBs).

Shares of Transformers and Rectifiers (India) witnessed some profit booking on Friday as the stock closed 1.73% lower at ₹796.5 apiece on the NSE, snapping the winning run of the last three consecutive sessions. In the previous three sessions, the stock gained over 10%.