Multiplex operator Inox Leisure launches Rs300 crore share sale1 min read . Updated: 08 Jun 2021, 06:41 PM IST
- The company said that it has fixed a floor price of Rs315.25 apiece for the share sale, based on a Sebi formula
India’s second largest multiplex chain Inox Leisure Ltd on Tuesday said that its board has approved the launch of a so-called qualified institutional placement (QIP) offering to raise funds from institutional investors.
The company said that it has fixed a floor price of Rs315.25 apiece for the share sale, based on a Sebi formula. Companies can offer upto 5% discount on the floor price to investors.
According to deal terms seen by Mint, the company plans to raise upto Rs300 crore from the share sale.
Inox Leisure is expected to offer its share at an indicative price of Rs310 per share, according to the deal terms, a 7.1% discount to the last closing price on NSE as on 8 June (Rs333.70).
Investment banks Edelweiss and Axis Capital are advising the company on the share sale.
“Our Company proposes to utilize the Net Proceeds (i) to meet capital expenditure requirements for ongoing and future projects; (ii) to sustain growth in the business; (iii) for business expansion and to improve the financial leveraging strength of the Company; (iv) towards working capital requirements; (v) towards debt repayments including repayment of any existing or future debt incurred for any purpose including for paying off any liability; (vi) for investments including amongst others, in subsidiary companies; (vii) to meet the current operational expenses," the company said in an offer document filed with the stock exchanges.
This is the second time the company is raising funds from the market through a QIP, since the pandemic began.
In November it raised Rs250 crore through a QIP.
Its rival and the country’ largest multiplex chain PVR Ltd too has raised funds from the markets twice in this period.
In February, PVR closed a Rs800 crore share sale, while earlier in August 2020 it had raised Rs300 crore through a rights issue.
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