TD Power Systems QIP Opens At ₹775.35 Floor Price, Company May Offer Up To 5% Discount
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TD Power Systems has launched its qualified institutional placement after receiving the required board and shareholder approvals. The final issue price is yet to be determined and may be set at a discount to the ₹775.35 floor price.
TD Power Systems has opened its qualified institutional placement (QIP) and fixed the floor price at ₹775.35 per equity share, with the company permitted to offer a discount of up to 5% on the floor price. The QIP opened on Wednesday, October 7, after the company's Fund Raising Committee approved the launch of the institutional share sale.
October 7 has also been fixed as the relevant date for determining the QIP floor price under SEBI regulations. TD Power Systems has not yet fixed the final issue price, which will be decided in consultation with the lead manager to the issue.
TD Power Systems shares were trading around ₹820 on Wednesday afternoon, placing the ₹775.35 QIP floor price about 5.4% below the prevailing market price. The stock recently touched a 52-week high of ₹856 on October 5. The final QIP price and the discount, if any, will therefore be key details as the company proceeds with the institutional fundraising.
TD Power Systems QIP Price And Discount
TD Power Systems' Fund Raising Committee approved the opening of the QIP at its meeting on October 7. The committee also approved the preliminary placement document and application form in connection with the issue.
The QIP floor price has been set at ₹775.35 per equity share based on the pricing formula prescribed under Regulation 176(1) of the SEBI ICDR Regulations.
TD Power Systems may offer a discount of not more than 5% on the floor price. The company has not yet announced whether it will use the entire permitted discount.
The final issue price will be determined by the company in consultation with the lead manager appointed for the QIP.
October 7 has been fixed as the relevant date for the institutional placement.
The latest fundraising follows approval from TD Power Systems' board on August 14 and a special resolution passed by shareholders at an extraordinary general meeting on September 10.
TD Power Systems Share Price
TD Power Systems shares were trading around ₹820 on Wednesday afternoon, compared with the QIP floor price of ₹775.35 per share.
At that market price, the QIP floor price was around 5.4% lower. However, the floor price should not be confused with the final issue price, which is yet to be determined.
TD Power Systems shares recently touched a 52-week high of ₹856 on October 5.
The company had reported revenue of ₹640.05 crore for the June quarter of FY27, while net profit stood at ₹86.29 crore.
The final QIP issue price and the number of shares to be allotted will provide further details on the institutional fundraising.
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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