Transformers and Rectifiers launches Rs 500 crore QIP

ET Intelligence Group: Ahmedabad-headquartered heavy electrical equipment maker Transformer and Rectifiers has initiated a share sale to institutional investors through a qualified institutional placement (QIP) to raise Rs 500 crore ($60 million), as per a term sheet reviewed by ET.

The term sheet indicates an indicative issue price of Rs 665 per share and a floor price of Rs 699.95 per share. Transformer and Rectifier's stock closed at Rs 733.80 on June 10, indicating that the QIP is launched at a 9.38% discount to the last closing price. The issuance of additional shares for the QIP would result in an equity dilution of 5.27% based on the pre-issue outstanding equity share capital.

The company intends to utilize the proceeds from the QIB fund for funding capex, repayment of borrowings, funding working capital, funding inorganic growth, and general corporate purposes.

Institutional investors participating in the QIP will have a lock-in period of 60 days. Nuvama Wealth Management is serving as the bankers to the deal.