Transformers & Rectifiers Announces ₹500 Cr QIP for Institutional Investors

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Synopsis:

Transformers & Rectifiers (India) Ltd. aims to raise ₹500 crore via share sale at ₹699.95 per share, a 4.5% discount. The sale will dilute 5.2% equity, funding capital expenditure, debt repayment, and general corporate purposes.

Transformers & Rectifiers News Today

Transformers & Rectifiers (India) Ltd. is launching a share sale to institutional investors to raise up to ₹500 crore. Nuvama Wealth Management Ltd, previously known as Edelweiss Securities Ltd, is the book-running lead manager for the share sale.

The company announced a floor price of ₹699.95 per share in its stock exchange filing. This price represents a 4.5% discount on the closing price on Monday. The share sale is expected to result in an equity dilution of 5.2%.

Use of Proceeds

The funds raised from this share sale will be utilised for various purposes including:

  • Capital Expenditure: Investments in expanding and upgrading the company's infrastructure and operations.

  • Debt Repayment: Reducing the company's existing borrowings to improve financial health.

  • Working Capital: Ensuring the company has adequate resources for daily operational needs.

  • Inorganic Growth: Funding potential acquisitions and mergers to expand the company’s market presence.

  • General Corporate Purpose: Supporting other unspecified corporate needs.

Lock-Up Period

After the share sale, the selling shareholder will be subject to a lock-up period of 60 days, during which they are restricted from further selling of shares, with certain exceptions.

Promoter Stake

According to the shareholding pattern from the March quarter, promoter group entities hold a 69.65% stake in Transformers & Rectifiers (India) Ltd.

This strategic move is aimed to strengthen the company's financial position and support its growth objectives.

 

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