The shares of the wagon manufacturer gained up to 4.4 percent after the company announced the successful completion of its Qualified Institutional Placement (QIP) of Rs 800 crore, which was subscribed to 3.5 times its size.
Jupiter Wagons Ltd has a market capitalization of Rs 29,087.32 crore, the shares were trading at Rs 705.50 per share, increasing around 1.14 percent as compared to the previous closing price of Rs 696.00 apiece.
Matter Explanation:-
The company’s shares have seen positive movement after Jupiter Wagons Ltd announced the successful completion of its Qualified Institutional Placement (QIP) of Rs 800 crore, which was subscribed to 3.5 times its size. The total demand reached approximately Rs 2,800 crore.
Moreover, the QIP witnesses participation from a diverse range of investors which includes ASK, BOI, HSBC Halbis, and SBI General Insurance, among others. This fundraising will be allocated towards establishing a forged rail wheel and axle manufacturing plant.
Furthermore, this strategic move will enhance the company’s backward integration and support its long-term growth objectives. Moreover, this initiative will create opportunities to expand into the export market, further strengthening the company’s growth and market presence.
Order Book:-
As of March 31, 2024, Jupiter Wagons Ltd (JWL) had a robust order book of over Rs 53,000 million (Rs 5,300 crore), with the wagon segment contributing more than 75%. The company’s CFO highlighted revenue visibility for the next 3.5 years, boosted by orders from Indian Railways and private players.
The company has consistently secured around Rs 750 crore in new orders each quarter, with a sequential increase of Rs 100-200 crore over the past year, indicating strong and steady growth.
Remarkable return & capacity expansion:-
The stock has given a return of 88.24 percent in just six months and a multi-bagger return of 287 percent in a year. A shareholder’s investment of Rs. 1 lakh in the firm is worth Rs. 3.87 lakh in a year.
JWL aims to scale up production capacity to 1,000 wagons per month by the end of FY25 which includes the expansion of its current steel foundry capacity at Kolkata from 2,500 MT to 3,000 MT and adding a new 2,000 MT steel foundry at Jabalpur in the next 18 months.
Company profile:-
Jupiter Wagons Limited is a railway engineering business that provides freight wagons and passenger coaches for the Indian Railways. The company manufactures railway wagons, wagon components, castings, and metal fabrication, including load bodies for commercial vehicles and rail freight wagons.
Written by:- Abhishek Singh
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