A leading electronics manufacturing and solutions provider is set to bolster its financial position through a strategic Qualified Institutional Placement (QIP). The company has received approval for a significant fundraising initiative that could raise up to Rs 1,500 crore, marking a pivotal moment in its growth trajectory.
Investors have shown strong interest, with the floor price set at Rs 705.18 per share and an initial uptick of 6.75% in market response. This financial move signals the company’s robust expansion plans and commitment to strengthening its market position.
Share Price Movement
The share price of PG Electroplast Limited hit the upper circuit of 6.75 percent to Rs. 825 per share on Thursday, an increase from its previous close of Rs. 772.8 per share. The market capitalisation now stands at approximately Rs. 20,938 crore as of December 05, 2024.
What happened
The company launched its Qualified Institutional Placement (QIP) issue on December 4, setting the floor price at ₹705.18 per share, as approved by the board. Sources from CNBC-TV18 suggest the QIP could raise up to ₹1,500 crore. The funds are earmarked for meeting working capital needs, debt repayment, and general corporate purposes.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, PG Electroplast’s consolidated revenue from operations has increased by 45.8 percent YOY from Rs. 460 crore in Q2 FY24 to Rs. 671 crore in Q2 FY25 and decreased by 49.2 percent QoQ from Rs. 1,321 crore in Q4 FY24.
The company’s consolidated net profit has increased by 58.3 percent, from Rs. 12 crore in Q2 FY24 to Rs. 19 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has decreased by 77.3 percent QoQ from Rs. 84 crore.
Market Outlook
The outlook for the Indian EMS and contract manufacturing industry is very positive. The industry is expected to experience robust growth in the coming years, driven by increasing domestic demand and electronics exports.
The government’s strong support and initiatives like the PLI scheme are expected to further boost the industry’s capabilities and competitiveness. The industry is poised to become a major global player, with projections of reaching a $1 trillion digital economy and a $300 billion EMS market by 2026 and 2025, respectively.
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Shareholding Pattern
As of the December 2024 shareholding pattern, PG Electroplast Limited is primarily held by the promoters at 53.42 percent, foreign institutional investors hold 10.69 percent, and the public with 25.91 percent.
About Company
PG Electroplast Limited (PGEL) stands as a key player in India’s manufacturing landscape, excelling in Electronics Manufacturing Services (EMS), Original Equipment Manufacturing (OEM), and Original Design Manufacturing (ODM). Established in 2003, it serves as the flagship company of the PG Group, which has roots dating back to 1977. Headquartered in Greater Noida, PGEL combines decades of expertise with modern innovation to meet the demands of a dynamic market.
With five state-of-the-art manufacturing units across India, PGEL offers comprehensive solutions, including plastic moulding, PCB assembly, and final product assembly. Its facilities in Greater Noida, Ahmednagar, and Roorkee specialise in producing components for air conditioners, televisions, washing machines, and more. Through its focus on advanced technology and rigorous quality management, the company consistently meets global standards while catering to diverse sectors like consumer electronics and automotive.
PGEL continues to strengthen its market presence with strategic moves like its recent joint venture with Goodworth Electronics Ltd, to expand in television and hardware production. By embracing customer-centric solutions and innovative strategies, PGEL is poised to drive growth and reinforce its leadership in the Indian manufacturing industry.
Written By Fazal Ul Vahab C H
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