Zen Technologies Limited Raises ₹1,000 Crores in Qualified Institutional Placement

Zen Technologies Limited, a leading player in defence simulation training equipment and counter drone solutions, has successfully raised ₹1,000 crores through its first-ever Qualified Institutional Placement (QIP). The QIP, launched on August 21, 2024, and closed on August 23, 2024, saw significant interest from both domestic and international investors, underscoring strong confidence in the company's strategic vision and market position.

Zen Technologies Limited allocated 62,46,096 equity shares, each with a face value of ₹1, to qualified institutional buyers (QIBs) at an issue price of ₹1,601 per share. This pricing represents a discount of approximately 5% to the QIP floor price of ₹1,685.18 per share, as determined by SEBI regulations. The QIP was oversubscribed by ~5 times, reflecting the high demand and investor confidence in Zen Technologies' growth strategy.

Key investors participating in this QIP include Kotak Mutual Fund, White Oak Offshore Fund, White Oak Mutual Fund, Motilal Oswal Mutual Fund, and Bandhan Mutual Fund, amongst others.

The proceeds from the QIP will be strategically deployed to accelerate Zen Technologies' growth plans. These include exploring inorganic growth opportunities and funding working capital requirement for the expected rapid growth in the coming years. This capital infusion aligns with the company's long-term vision to penetrate adjacent markets (Naval and Air Force), to continue deep R&D in the field of counter-drone solutions, and expand its footprint in the global defence market.

Commenting on the fund raise, Mr. Ashok Atluri, Chairman and Managing Director said: "The overwhelming response to our QIP from both domestic and international investors is a testament to their trust in Zen Technologies' vision and strategy. The successful completion of this QIP, marks a pivotal moment in our journey. We are now well-positioned to pursue strategic acquisitions and partnerships that will accelerate our market expansion and enhance our capabilities in defence simulation training and counter-drone technologies. Additionally, the raised capital will fortify our working capital requirements and ensure to maintain robust growth momentum."

The Book Running Lead Managers (BRLMs) to the QIP issue were Motilal Oswal Investment Advisors Limited, ICICI Securities Limited and Nuvama Wealth Management Limited.

Shares of Zen Technologies Limited was last trading in BSE at Rs. 1786.75 as compared to the previous close of Rs. 1753.10. The total number of shares traded during the day was 33162 in over 2255 trades.

The stock hit an intraday high of Rs. 1799.00 and intraday low of 1715.00. The net turnover during the day was Rs. 58175571.00.

Source : Equity Bulls

Keywords

ZenTechnologies INE251B01027 Defence FundRaising QIP