Craftsman Automation Initiates Rs. 1200 Cr QIP at Rs. 4,400 per Share

A stock that recently made news is the automation firm, Craftsman Automation Limited. Through an exchange filing on 18 June 2024, the company informed the proceeds of its latest Fund Raising Committee meeting on 18th June 2024. The proceeds followed the approval accorded by the Company’s Board of Directors and the Special Resolution passed by the Members of the Company by way of shareholders’ resolution at the Annual General Meeting, both held on 27th May 2024.

What were the proceeds about?

The company informed the exchange that the approval has come for raising funds by way of issuance for some equity shares having a face value of Rs.5/-. The amount will be raised by way of qualified institutions placement (QIP) for an aggregate amount of Rs. 1,20,000 Lakhs.

The committee has also fixed the “Relevant Date” for the purpose of the issue as 18th June 2024 and the floor price based on the pricing formula at Rs. 4426.11 per Equity Share. At this price, according to SEBI ICDR Regulations and the shareholders’ approval on 27th April, the Company will only offer a discount of 5% on the floor price. 

About the company:

Craftsman Automation started its journey in 1986, as a small-scale industry in the city of Coimbatore. The company has since grown to become a leader in precision manufacturing in diverse fields. The team of engineers and craftsmen is committed to build a culture of quality with a unique emphasis on social responsibility.

Stock Performance:

Craftsman Automation stock is currently trading at Rs.4,910 a piece up by 3% post the QIP news. The stock is trading higher than its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Craftsman Automation shares have a beta of 0.5, indicating very low volatility in a year.

Conclusion: The diversified engineering company with manufacturing capabilities in 3 business segments: Automotive – Powertrain and Others, Automotive – Aluminium Products, and Industrial and Engineering, shows a growth pattern with an increase in copper and aluminum demand, making it a stock to watch out for!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.