PG Electroplast to Raise ₹1,500 Crore via QIP to Fund Expansion and Debt Repayment

PG Electroplast Ltd., a leading integrated electronics manufacturing services (EMS) player, has initiated a Qualified Institutional Placement (QIP) to raise ₹1,500 crore. The company plans to use the proceeds for strategic investments, debt management, and general corporate purposes. The initiative comes as part of PG Electroplast’s growth trajectory, especially its recent entry into the electric vehicle (EV) manufacturing sector.

Details of the QIP and Fund Allocation

The board of PG Electroplast approved the QIP, setting a floor price of ₹705.18 per share, which is 8.5% lower than the last closing price on the NSE. The company may also offer a further discount of up to 5% on the floor price. JM Financial Consultants Pvt. is the sole merchant banker for this fundraising effort.

The raised funds will be used to:

1. Invest in its subsidiaries, PG Technoplast and Next Generation Manufacturers Pvt.
2. Repay or prepay existing borrowings.
3. Support general corporate activities.

Foray Into EV Manufacturing

PG Electroplast has ventured into EV manufacturing by signing an exclusive agreement with Spiro Mobility, an Africa-based affordable electric two-wheeler company. Under this partnership, PG Electroplast will manufacture Spiro’s electric vehicles in India.

The collaboration is expected to contribute ₹500 crore to PG Electroplast’s revenue by FY 2026-27. Vikas Gupta, the company’s Managing Director, expressed optimism, highlighting plans for increased domestic content localisation in EV manufacturing.

PG Electroplast Share Performance

As of December 05, 2024, 12:44 PM, shares of PG Electropast Ltd. are trading at ₹800.15 per share with a surge of 3.5% from its previous day’s closing price. Over the last month, the stock has seen a notable surge of 26.66%. The stock has a 52-week high and 52-week low of ₹825.00 per share and ₹146.70 per share respectively.

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.