CELLO WORLD SHARES SURGE TO ALL-TIME HIGH AFTER LAUNCH OF RS 730-CRORE QIP
Shares of Cello World surged nearly 7 percent to hit an all-time high of Rs 1,025 on July 4 after the company launched a qualified institutional placement (QIP) to raise Rs 730 crore.
At 10.44 am, shares of Cello World were trading at Rs 992.05 on the NSE, off its record highs touched in the first hour of trade. The news of the QIP also tipped off a spike in volumes in the counter as 10 lakh shares changed hands on the exchanges so far, sharply higher than the one-month daily traded average of four lakh shares.
In the QIP, the company is offering equity shares at a floor price of Rs 896.09 per share, a near 12 percent discount from the previous closing price of Rs 901.05.
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The fundraise comes just eight months after the company listed on the stock exchanges through a Rs 1,900-crore initial public offering (IPO), during which the company's promoters and investors sold their shares in an offer for sale (OFS).
The company plans to use the funds for various purposes, including debt repayment, capital expenditure to enhance its manufacturing facilities, funding its growth plans, and meeting working capital requirements.
Another crucial reason for the QIP is to reduce the promoter stake in the company to 75 percent to comply with the Securities and Exchange Board of India (SEBI) minimum public shareholding norms, as reported by Moneycontrol earlier this week.
According to these norms, all newly listed companies must achieve a minimum public shareholding of 25 percent within three years from listing.
Shares of Cello World listed on the exchanges at a premium of 28 percent over its IPO price back in November last year. Since its listing, the stock has risen close to 16 percent.
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2024-07-04T05:44:56Z dg43tfdfdgfd