Bharat Forge launches QIP, sets floor price at ₹1,323.54 per share

Bharat Forge Ltd has approved the launch of its Qualified Institutions Placement (QIP), setting the floor price for the equity issue at ₹1,323.54 per share. The decision, made by the company’s Investment Committee during a meeting on Wednesday, follows prior approval from the Board of Directors and shareholders via a postal ballot.

The floor price has been determined in accordance with the Securities and Exchange Board of India (SEBI) regulations, with the ‘Relevant Date’ for the issue being today, December 4, 2024. Bharat Forge may offer a discount of up to 5% on the floor price, as per the special resolution passed by shareholders on November 8, 2024.

Bharat Forge will submit the preliminary placement document to BSE Ltd. and the NSE on Wednesday. The company also announced that its trading window has been closed since September 25 and will remain closed until further notice, specifically for the Qualified Institutions Placement (QIP) process.

The company reported revenue and net profit for the September quarter that were below analyst expectations and mostly flat on a year-on-year basis.

Revenue for the quarter remained nearly unchanged at ₹2,246 crore from ₹2,249 crore during the same period last year. Net profit stood at ₹361.1 crore, a growth of 4.4% from the same quarter last year’s figure of ₹346 crore.

The company expects the performance in the second half of the current financial year to be stable when compared to the first half, with focus on revenue growth and profitability improvement in its subsidiaries.

Shares of Bharat Forge ended 2.1% higher at ₹1,379 on the BSE on Wednesday.

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