Shares of Hindalco surged nearly 3% after the company informed bourses that it has set the floor price at Rs 184.45 per share for raising funds through qualified institutional placement (QIP) issue which opened on Thursday.
Reacting to the development, the stock of the company rose nearly 3% to Rs 195 on the BSE. It has gained about 22% so far this year by Thursday's close.
On the volume front, over 8 lakh shares exchanged hands on the conuter as compared to two-week average of 11 lakh shares.
Although the placement would result in a dilution of shares, investors are encouraged by the pricing of the issue.
QIP is a capital-raising tool, whereby a listed company can issue equity shares, fully and partly convertible debentures, or any securities other than warrants which are convertible to equity shares to a qualified institutional buyer.
Hindalco is one of the leading integrated primary producer of aluminium in Asia. With a pan-Indian presence that encompasses the entire gamut of operations, from bauxite mining, alumina refining, aluminium smelting to downstream rolling, extrusions and recycling, Hindalco enjoys a significant position in aluminium and downstream value-added products in the country.
(With inputs from agencies)