Home / Market / Stock-market-news /  CESC raises $80 million through QIP

Mumbai: Power utility CESC Ltd has raised $80 million through a so-called qualified institutional placement (QIP), or sale of shares to institutional investors, said two bankers familiar with the development requesting anonymity.

The issue opened early in the morning on Wednesday and was fully subscribed by noon. “Some of the investors who have subscribed to the issue include Capital World, Blackrock Inc., Invesco Ltd and MFS Investment Management among others," said one of the two bankers.

The RP-Sanjiv Goenka group company said the shares will be offered for 677.84 apiece, but it may offer a discount of up to 5% at its discretion.

“The company is offering the shares in the range of 677.84-643.94 per share," said the second banker.

Bloomberg had earlier said the company will sell 4.8 million shares and the stock sale will be managed by CLSA India, Citigroup Global Markets India, Credit Suisse Securities (India), ICICI Securities, Kotak Mahindra Capital, IDFC Securities.

At 12pm, CESC shares rose 0.74% to 669.50, while the BSE Sensex gained 0.59% to 27,040.35 points.

Some of the recently concluded issuances from infrastructure firms have not seen an uptick in share prices. Companies like Jaiprakash Associates Ltd has seen its share price fall by 57% since its QIP listing and the shares are now trading at around 30 apiece.

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