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
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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