Pitti Engineering QIP: SBI Mutual Fund, Aditya Birla Sunlife Among Top Buyers

Pitti Engineering approved the allotment of 34.14 lakh equity shares at an issue price of Rs 1,054.25 per share on Thursday. SBI Mutual Fund and Aditya Birla Sunlife Mutual Fund were the top buyers at the qualified institutional placement (QIP) by Pitti Engineering Ltd., receiving 36.1% and 25% of the allotted shares, respectively. Pitti Engineering Limited announced on July 8 that they will be raising funds through a Qualified Institutional Placement (QIP). Th issue size of the QIP is Rs 360 crore, with a lock-in period of 90 days for investors. They are offering the shares at a discounted price of 8.93% at Rs. 1054.25 per share, which is considered favorable. Consequently, SBI invested Rs. 130 crore to acquire 36.1% of the shares.  Several factors, such as a rise in sales revenue, cost-cutting measures, and improved operational efficiency, have contributed to Pitti Engineering Ltd.’s significant increase in net profit. Pitti Engineering Ltd.’s ability to adapt to changing market conditions and effectively manage its resources has paid off. The company’s strong financial performance is a testament to its strategic planning and execution, positioning it well for future growth and success in the competitive business landscape. The net profit for the quarter ended March 31, 2024, increased by 62.48% to Rs 40.36 crore compared to Rs 24.84 crore in the year-earlier period.

Pitti Engineering Limited QIP Investors: 

For the 34.14 lakh equity shares, the biggest investor who spent Rs. 130 crores in QIP shares is SBI Mutual Fund, and they got 36.1%, and after that, Aditya Birla Sunlife Mutual Fund spent Rs. 90 crores for a 25% stake, along with HSBC Mutual Fund at 9.72% for an Rs. 35 crores investment, Franklin India Smaller Companies Fund, Motilal Oswal Small Cap Fund, and Kotak Mahindra Life Insurance Company Ltd. all got 6.94% of the holding worth of Rs. 24 crores, respectively. 

Pitti Engineering Limited stock movement: 

Today, the stock is down by 2%, and the price is currently running at Rs. 1152 per share. Yesterday, the stock closed at Rs. 1156.30 per share. 

Pitti Engineering Limited Performance:

Akshay S. Pitti, who serves as Vice Chairman and Managing Director, declared that FY24 has been the most successful year in the company’s history, with record-breaking revenues, profitability, and sales volume. In the current quarter, the Maharashtra State Industrial Promotion Scheme provided a bonus of Rs. 30.45 crore.

Conclusion: All the leading mutual funds acquired the shares at a discounted price, which will benefit them in the long term.

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.