KEI Industries has successfully raised Rs 2,000 crore through a Qualified Institutional Placement (QIP) of equity shares, the company announced on Thursday. The QIP, which opened on November 25 and closed on November 28, saw the issuance of 52.6 lakh equity shares at Rs 3,800 per share, reflecting a 2.1% discount to the floor price of Rs 3,880.54.
Post-issuance, the company’s paid-up equity share capital has increased to Rs 191.1 crore, comprising 9.55 crore shares. The funds raised through this initiative will be used to enhance KEI Industries’ financial flexibility, support growth initiatives, and strengthen its balance sheet.
Domestic Mutual Funds Get Nearly 60% of Shares
The offering attracted robust participation from 104 institutional buyers, including several prominent domestic mutual funds. Kotak Mutual Fund emerged as the largest single investor, receiving 27.51% of the shares offered. This included allocations to its Kotak Emerging Equity Scheme and Kotak Small Cap Fund.
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Motilal Oswal Midcap Fund and Government Pension Fund Global were also notable participants, securing 13% and 5.15% of the issue, respectively. ICICI Prudential Mutual Fund’s Balanced Advantage Fund and Midcap Fund collectively accounted for another 13% of the total allotment.
Market Reaction and Historical Context
KEI Industries’ share price ended Thursday with moderate losses, down 0.34% at Rs 4,305.2 on the BSE. Despite the dip, the stock has gained 54% in the past year, taking the company’s market capitalisation to over Rs 36,000 crore.
The QIP marks KEI Industries’ return to equity markets after its last institutional placement in January 2020. This move further cements the company’s position as a key player in the cables and wires segment, which is crucial to infrastructure development and energy projects across India.
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