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Business News/ Market / Stock-market-news/  Ramco Systems launches QIP to raise up to Rs325 crore, shares up 12%
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Ramco Systems launches QIP to raise up to Rs325 crore, shares up 12%

In a statement to BSE, the company said the issue floor price is Rs668 per share

At 10.40am, Ramco Systems shares were up 8.79% at Rs680.50, while the benchmark BSE Sensex was trading flat at 27,894.38 points.Premium
At 10.40am, Ramco Systems shares were up 8.79% at Rs680.50, while the benchmark BSE Sensex was trading flat at 27,894.38 points.

Mumbai: Enterprise software provider Ramco Systems Ltd shares jumped as much as 12% on Thursday after the company said it has started raising money from institutions by selling shares.

A person involved in the so-called qualified institutional placement (QIP) said Ramco Systems plans to raise 300 crore from the issue, but may retain up to 325 crore, depending on investor interest. The issue opened late last evening, he added, requesting anonymity as he is not authorized to speak to the media.

In a statement to BSE, the company said the issue floor price, according to the Securities and Exchange Board of India (Sebi) formula, is 668. According to the person cited above, there is a discount of up to 5% on the floor price.

“The firm had been looking to launch the issue for a couple of days now, but market choppiness in the last few days delayed the issue," he added.

On 27 July 2014, the firm’s board had approved raising up to 500 crore through a QIP.

At 10.40am, Ramco Systems shares were up 8.79% at 680.50, while the benchmark BSE Sensex was trading flat at 27,894.38 points.

In 2015, 14 firms have raised Rs5,257 crore through QIPs. The large issuances include HDFC Bank Ltd’s 2,000 crore issue and Dewan Housing Finance Corp. Ltd’s 810 crore issue. Last year, 33 listed companies had raised 31,684.22 crore through QIPs, according to Prime Database, a primary market tracker.

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ABOUT THE AUTHOR
Swaraj Singh Dhanjal
" Based in Mumbai, Swaraj Singh Dhanjal is responsible for Mint’s corporate news coverage. For the past eight years he has been writing on the biggest deals in private equity, venture capital, IPO market and corporate mergers and acquisitions. An engineer and an MBA, he started his journalism career in 2014 with Mint. "
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Published: 23 Apr 2015, 11:04 AM IST
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