Insecticides (India) to raise Rs150 crore through QIP1 min read . Updated: 18 Jul 2015, 01:24 AM IST
The firm is looking at launching the fund raising process next week
Mumbai: Insecticides (India) Ltd, which manufactures agrochemicals, is planning to raise up to ₹ 150 crore by selling shares to institutional investors, according to three people aware of the development.
The firm is looking at launching the fund raising process next week, they said.
“The firm will launch the QIP (qualified institutional placement) to raise a base amount of ₹ 110 crore and if the demand is strong, they may increase it to ₹ 150 crore," one of the people said on condition of anonymity.
“We haven’t finalized it yet and so we cannot comment on the same," said Rajesh Aggarwal, managing director at Insecticides (India) Ltd.
According to a BSE filing by the company on 22 January, its board passed a resolution to raise funds through various modes, including a share sale, to implement the company’s business plan.
In 2014-15, the company’s revenue grew 11.6% to ₹ 964.19 crore from ₹ 864.08 crore a year ago, while net profit grew 37.3% to ₹ 54.85 crore from ₹ 39.94 crore.
So far this year, 22 companies have raised a total of ₹ 12,750 crore by selling shares to institutional investors, while in 2014, 33 companies raised ₹ 31,684.2 crore through this route.
Last week, Phoenix Mills Ltd and Titagarh Wagons Ltd launched QIPs to raise funds from institutional investors. Phoenix Mills raised ₹ 283 crore from its share sale, while Titagarh Wagons raised ₹ 250 crore.
Most of the 22 QIPs this year have been below ₹ 500 crore, as mostly small and mid-sized companies have utilized this fund raising option. The big-ticket issues this year came from the financial sector, with IndusInd Bank Ltd raising over ₹ 4,000 crore, HDFC Bank Ltd ₹ 2,000 crore and Bajaj Finance Ltd ₹ 1,400 crore.
At 1.27pm, Insecticides (India) Ltd shares were trading at ₹ 571, down 0.91%, on BSE, while the benchmark Sensex gained 0.08% to 28,469.28 points. The stock has been trading at a 15-day average price of ₹ 571.52.