Craftsman Automation Initiates ₹1,200 Crore QIP to Fuel Expansion

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Synopsis:

Craftsman Automation initiates a ₹1,200 crore QIP at ₹4,400 per share, targeting growth with a new plant in Rajasthan. It serves major auto OEMs and plans to strengthen its position in North India, expecting robust demand in industrial sectors.

Craftsman Automation QIP News Today

Craftsman Automation Ltd has launched a Qualified Institutional Placement (QIP) to raise ₹1,200 crore, aimed to boost its manufacturing capabilities and expansion plans.

The initiative, which began on June 18, underscores the company's strategic approach to funding growth opportunities.

Details of the QIP

The QIP is priced at a floor of ₹4,400 per share, marking a 7.7% discount to Craftsman Automation's recent closing price.

Axis Capital is serving as the sole Book Running Lead Manager (BRLM) for this transaction, facilitating the offering to institutional investors.

Strategic Investments

Earlier, in April, Craftsman Automation announced plans for a ₹150 crore investment to establish a greenfield plant in Bhiwandi, Rajasthan.

This facility aims to enhance the company's capabilities in its core verticals: powertrain, aluminium products, and industrial engineering.

The strategic move has positioned Craftsman to capitalise on growing business opportunities in North India.

Exlpore:Craftsman Automation Ltd Share Price

Market Position and Outlook

Craftsman Automation plays a significant role in the machining of cylinder blocks and heads for the M&HCV segment, poised to benefit from sustained demand in commercial vehicles and industrial sectors.

The company's expansion aligns with favourable market conditions, particularly in India's increasing demand for copper and aluminium, driven by electrification and automotive applications.

Chairman's Perspective

S Ravi, Chairman and Managing Director of Craftsman Automation, emphasised the strategic importance of the new Bhiwandi plant, stating it will strengthen their service capabilities and market presence in North India.

This expansion is expected to position Craftsman as a key driver of business growth in the foreseeable future.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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