Sona BLW Precision Forgings shares rose on Thursday after the company started its qualified Institutional placement (QIP) on Wednesday. The company also got product-linked incentive (PLI) approval for a new product.
What Happened: Sona BLW said that the fund raising committee (FRC) has set ₹699.01 per share as the floor price for the issue. The board also approved the opening of the issue on Wednesday.
The company may offer a discount of not more than 5% on the floor price calculated for the issue. The company's board had approved the QIP in a board meeting on July 24.
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CNBC-TV18 reported that the company is likely to raise upto ₹2,400 crore from the QIP. The funds raised will be used for repaying and prepaying some of its outstanding borrowings.
Sona BLW also said that it received a certificate for the hub wheel motor for electric two wheeler under the PLI scheme for Automobile and Auto Component Industry in India.
CNBC-TV18 also reported that Sona BLW is in talks with Escorts Kubota to acquire its railway business for around ₹2,000 crore. Escort's railway business reported a revenue of ₹950 crore in FY2024.
Price Action: Shares of Sona BLW rose 2.02% to ₹737 on Thursday morning.
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