Jupiter Wagons Ltd successfully concludes QIP of Rs 800 Cr adding Marquee Investors

Jupiter Wagons Limited, a leading provider of comprehensive mobility solutions encompassing rail, road, and marine transportation, has announced the successful completion of its Qualified Institutional Placement (QIP), raising INR 800 Crores. The QIP received an overwhelming response, with total demand reaching approximately INR 2,800 Crores, demonstrating strong confidence from institutional investors. This demand, which was 3.5 times the size of the QIP, underscores the robust interest and trust in the company's future prospects.

The QIP Issuance witnessed participation from a diverse range of investors, including ASK, BOI, HSBC Halbis and SBI General Insurance, among others.

The capital raised through this QIP will be majorly allocated towards establishing a forged rail wheel and axle manufacturing plant. This strategic move is designed to enhance the company's backward integration and support its long-term growth objectives. Moreover, this initiative will create opportunities to expand into the export market, further strengthening the company's growth and market presence.

The Company will issue 12,204,424 equity shares with a face value of Rs. 10 per share at a price of Rs. 655.50, which includes a premium of Rs. 645.50. In addition to this, preferential warrants are being issued to co-Promoter of Jupiter Wagons - Tatravagonka A.S., consisting of up to 2,872,340 Convertible Warrants at a price of Rs. 470 each (including a Rs. 460 premium), with a total consideration not exceeding Rs. 135 Crores in cash.

Systematix Corporate Services Limited and Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) were the Book Running Lead Managers (BRLM) to the QIP.

Commenting on the successful fund raise, Mr. Vivek Lohia, Managing Director of Jupiter Wagons Limited, said, "The overwhelming response, with total demand reaching approximately INR 2,800 Crores or about 3.5x of Issue size, demonstrates strong confidence from institutional investors and underscores the robust interest and trust in our company's future prospects. The capital raised will be majorly allocated towards establishing a forged rail wheel and axle manufacturing plant, a strategic move designed to enhance our backward integration and support our long-term growth objectives. Moreover, this initiative will create opportunities to expand into the export market, further strengthening our growth and market presence."

He continued, "The QIP attracted participation from a diverse range of investors, including ASK, BOI, HSBC Halbis, and SBI General, showcasing strong market confidence in Jupiter Wagons Limited. The issuance of Convertible Warrants to Tatravagonka A.S. further strengthens our strategic relationship and validates their confidence in the opportunity."

Shares of Jupiter Wagons Limited was last trading in BSE at Rs. 696.00 as compared to the previous close of Rs. 689.30. The total number of shares traded during the day was 71753 in over 3049 trades.

The stock hit an intraday high of Rs. 714.25 and intraday low of 686.75. The net turnover during the day was Rs. 50271585.00.

Source : Equity Bulls

Keywords

JupiterWagons INE209L01016 CommercialVehicles FundRaising QIP MarqueeInvestors