Qualified Institutional Placement (QIP) is defined as the allotment of securities by publicly listed companies in India to Qualified Institutional Buyers (QIBs) on a private placement basis.
This method allows companies to raise funds more quickly and with less regulatory burden compared to traditional methods like Initial Public Offerings (IPOs) or Follow-on Public Offers (FPOs).
Following are the two companies whose Board approved raising of funds through a QIP:
Pondy Oxides and Chemicals Limited
With a market cap of Rs. 2,585.4 crores, the shares of India’s leading recycling and manufacturing company surged around 4.7 percent on BSE to Rs. 2,130 on Tuesday.
The Board of Pondy Oxides and Chemicals Limited (POCL) in its meeting held on 23rd September, approved the raising of funds for an aggregate amount of up to Rs. 250 crores through QIP, in one or more tranches.
Additionally, the Board has fixed 16th October as the Record date for the sub-division or split of the existing equity shares of the company in a 1:2 ratio.
The company has reported a significant growth in revenue from operations, with around a 37 percent YoY rise from Rs. 325 crores in Q1 FY24 to Rs. 445 crores in Q1 FY25. Similarly, the net profit grew by 225 percent, from Rs. 4 crores to a profit of Rs. 13 crores, during the same period.
By 2030, POCL targets the expansion of capacity in existing verticals (Lead) and diversification into new verticals.
Further, the company also aims for volume growth of over 15 percent, a revenue CAGR and profitability growth of over 20 percent, EBITDA margins exceeding 8 percent, a return on capital employed (ROCE) of over 20 percent, and value-added products making up 60 percent or more of its portfolio.
The stock has delivered multibagger returns of nearly 362.5 percent in one year, as well as around 313.5 percent returns year-to-date.
Incorporated in 1995, Pondy Oxides and Chemicals Limited is engaged in the business of converting scraps of various forms of lead, aluminium and copper into lead metal, aluminium metal, copper and its alloys.
The company smelts lead battery scrap to produce secondary lead metal is then processed into pure lead and specific lead alloys.
Punjab National Bank
With a market cap of Rs. 1.19 lakh crores, the shares of India’s second-largest PSU bank slumped by around 2.6 percent on BSE to hit an intraday low at Rs. 108.55 on Tuesday.
Punjab National Bank launched a QIP to raise up to Rs. 5,000 crore, with an indicative price set at Rs. 103.75 per share. According to regulatory filings, the base deal size is Rs. 2,500 crore, with the potential to be upsized to Rs. 5,000 crore based on demand.
The Capital Raising Committee authorised the issue to open on 23rd September and approved a floor price of Rs. 109.16, as determined by the pricing formula.
The bank has reported a significant growth in net interest income (NII), with around a 10.4 percent YoY rise from Rs. 9,608.5 crores in Q1 FY24 to Rs. 10,608 crores in Q1 FY25. Similarly, the net profit grew by nearly 207 percent, from Rs. 1,210.8 crores to Rs. 3,716.2 crores, during the same period.
The stock has delivered positive returns of nearly 35.7 percent in one year, as well as around 11.3 percent returns year-to-date.
Founded in 1894, Punjab National Bank is a banking institution engaged in the business of providing personal, social, agricultural, international and corporate banking services.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
