Bharat Forge Ltd has initiated a Qualified Institutions Placement (QIP) to raise up to Rs 1,650 crore through the sale of equity shares.
The floor price for this equity issue is set at Rs 1,323.54 per share, with an indicative price range between Rs 1,290 and Rs 1,320.
The QIP was approved by the company's Investment Committee, following prior approvals from its board and shareholders.
Bharat Forge's financial performance in the September quarter showed flat revenue of Rs 2,246 crore and a modest increase in net profit to Rs 361.1 crore.
The company remains optimistic about its performance in the latter half of the financial year and aims to enhance revenue and profitability across its subsidiaries.
The QIP is seen as a proactive step to strengthen the company's financial foundation and support its growth initiatives.
Market analysts view the capital raise positively, as it could enable Bharat Forge to invest in new projects, expand operational capabilities, and potentially improve market share in the automotive and defense sectors.
The timing of the QIP reflects a broader trend among companies optimizing their capital structures in response to market conditions.
Bharat Forge's focus on maintaining a robust financial position demonstrates its commitment to long-term growth and sustainability.