On June 11, Transformers and Rectifiers (India) conducted a qualified institutional placement (QIP), and its shares remained firmly locked in the upper circuit of five percent. For the issuance, the company established a floor price of Rs699.95 per share, which is 4.5% less than the closing price on June 10.
Legal counsel involved in this transaction comprised of Singhania & Co. acted as Legal Counsel to Transformers And Rectifiers (India) Limited (TRIL) on the QIP, represented by Pradeep Kumar Jain, Managing Partner, and Kshitij Asthana, Leader - Capital Markets.
Although the business has not disclosed the whole amount to be raised, sources informed CNBC-TV18 that the company is expected to raise about Rs500 crore via the QIP. Transformers and Rectifiers (India) shares were up 5% at Rs 770.45 a share at 11:20 a.m.
The sources claim that 5.2% of the equity may be diluted through the share sale. This means that the issue may be priced at about Rs 665, or a 9.38 percent discount.
The company intends to utilize the earnings for working capital, inorganic expansion, capital expenditures, loan repayment, and general corporate needs. The selling shareholder will have a 60-day lock-in period after the QIP before they are able to sell more shares.
Previously known as Edelweiss Securities, Nuvama Wealth Management is the book-running manager for the QIP. The promoter of the company owns 69.65 percent of the company, based on the ownership pattern from the March quarter.
Transformers and Rectifiers (India) shares have increased by more than 800 percent in the last year, providing investors with gains that have multiplied ninefold. By contrast, over the same period, the Nifty 50 index has increased by almost 25 percent.
