Bharat Forge raises ₹1,650 crore through QIP – Here’s how it plans to use the funds

Bharat Forge Ltd. announced on Monday (December 9) the closing of its Qualified Institutional Placement (QIP), through which it raised a sum of ₹1,650 crore.

In an exchange filing on Monday, the company said it has approved the issue and allotment of 1.25 crore shares of the company to 95 eligible institutional buyers.

The issue price of QIP has been fixed at ₹1,320 per share, which is almost equal to the floor price.

Domestic mutual funds such as ICICI Prudential, HDFC MF and Aditya Birla Sun Life are among the major participants in QIP.

Fund house	% of QIP shares
ICICI Prudential MF (various schemes)	11.82%
HDFC MF (two schemes)	6.66%
Aditya Birla Sun Life MF (Various Schemes)	9.39%
Nippon India MF (various programs)	10.60%
SBI MF (Various Schemes)	11.81%
Global government pension fund	6.67%
Mirae Asset MF (various schemes)	9.23%

After the issue of these shares, the total paid-up share capital of the company now stands at ₹95.61 crore, comprising 47.88 crore shares of face value of ₹2 each.

In an interaction with CNBC-TV18’s Nigel D’Souza at the 20th edition of India Business Leader Awards, Bharat Forge CMD Baba Kalyani said that a large portion of the QIP proceeds will be used to increase capacity.

The company is also in the middle of a merger and acquisition plan for which part of the money will be used, while the rest will be used to reduce the company’s debt globally.

“We focus on domestic companies first (when asked about M&A focus) because we see much greater growth opportunities in Indian markets. No other market is growing at the pace of India. So the growth is there. The opportunity is there. ” Kalyani said.

Shares of Bharat Forge ended 0.6 per cent higher on Monday at ₹1,362.5. The stock is up 9% so far this year.