Shares of KEI Industries jumped 5 per cent to Rs 547 on the BSE on Friday, after the cable maker undertook the issue of equity shares on a qualified institutions placement (QIP) basis.
The company said it launched a qualified placement of shares on Thursday and fixed the floor price of Rs 518.14 per share. It plans to raise up to Rs 500 crore from the issue.
The amount raised will be used for the pre-payment and / or repayment of outstanding indebtedness (whether in whole or in part), funding the long term growth of existing businesses and capital expenditure of the company, financing other long term capital, and working capital.
Meanwhile, for October-December quarter (Q3FY20), KEI Industries has registered 20 per cent plus growth for the sixth consecutive quarter on the back of strong dispatches in exports, extra high voltage (EHV) and Engineering, procurement, construction (EPC).
The management has marginally raised its FY20 revenue growth guidance to 18-19% (earlier 17-18%), even after registering 22 per cent year-on-year (YoY) growth in 9MFY20 due to capacity constraints in cables and slower pickup in housing wires.
Analysts at YES Securities believe FY21 growth would be led by increased contribution of housing wires. The brokerage firm believes money raised through QIP would find the next leg of growth and would aid the company in achieving 20 per cent revenue growth annually without increasing debt.
Source: Maalaimalar
