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GPT Infraprojects approved a QIP at a floor price of ₹183.83 per share. The stock closed at ₹187.20 on Monday, 1.36% lower, but has surged 353.82% over the past year, significantly boosting investor returns.
Kolkata-based infrastructure firm GPT Infraprojects Limited announced on Monday, August 26, that its Fund Raising Committee, with approvals from the board of directors and shareholders, has sanctioned a Qualified Institutional Placement (QIP) to secure additional funds.
Investors and market watchers will be closely monitoring the outcome of this QIP and its impact on the GPT Infraprojects share price.
The floor price for the QIP has been determined at ₹183.83 per equity share, according to the pricing formula stipulated under Regulation 176 of the SEBI ICDR Regulations. The company has also indicated the possibility of offering a discount of up to 5% on the floor price at its discretion, which could attract more institutional investors to the placement.
The committee not only approved the preliminary placement document dated August 26, 2024, but also authorised the opening of the QIP issue to eligible qualified institutional buyers.
On Monday, GPT Infraprojects share price closed at ₹187.20, reflecting a 1.36% decrease from the previous trading session. Despite this minor decline, the stock has delivered an impressive return of 353.82% over the past 12 months, multiplying investor wealth significantly.
The decision to proceed with a QIP highlights GPT Infraprojects' intent to leverage institutional investment for expanding its operational capabilities and exploring new infrastructure projects. The capital raised through this placement could be pivotal in driving the company’s long-term growth and profitability, thereby further enhancing shareholder value.
GPT Infraprojects' approval of the QIP is a strategic move to secure additional funds in a competitive market environment. By setting a competitive floor price and offering potential discounts, the company aims to attract substantial institutional interest, ensuring the success of the placement.
The significant appreciation in GPT Infraprojects share price over the past year reflects strong investor confidence, positioning the company favourably as it embarks on its next phase of growth.
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