Ace investor Rakesh Jhunjhunwala will buy 50 lakh shares of Va Tech Wabag as part of fund raising exercise of the water treatment firm. The share of the Va Tech Wabag closed higher after the firm said it would issue up to 75 lakh equity shares on a preferential basis at a price of Rs 160 per share to raise Rs 120 crore from three investors.
The company would issue 50 lakh shares to Rekha Rakesh Jhunjhunwala for Rs 80 crore, 15 lakh shares to Basera Home Finance Private Limited for Rs 24 crore and 10 lakh shares jointly to Sushma Anand Jain and Anand Jaikumar Jain for Rs 16 crore.
Va Tech Wabag share price rose up to 7.15% to Rs 231 compared to the previous close of Rs 216.80 on BSE. VA Tech Wabag share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Later, the share closed 5.21% higher at Rs 227 on BSE. Market capitalisation of the firm rose to Rs 1,243 crore.
However, Va Tech Wabag share price has lost 15.92% in the last one year and gained 24.14% since the beginning of this year. Total 2.62 lakh shares changed hands amounting to turnover of Rs 5.83 crore on BSE.
On August 21, the share gained 20% intra day after the firm said its board would meet on August 25 to consider and approve raising of funds by way of issue of equity shares, on preferential basis.
Later, the share closed 19% higher at Rs 218 on BSE.
Commenting on the fund raising exercise, Rajiv Mittal, MD & Group CEO, VA Tech Wabag said, "This is the first time the Company has proposed to raise equity capital since its IPO in 2010 and we believe that this well timed equity infusion will provide the necessary growth capital for the company to scale greater heights. We look forward to a long-term association with each of the potential incoming investors. The company with its technology focus, asset light model and global presence is well positioned to consolidate its leadership in the water technology sector."
The company is engaged in water treatment field. Its principal activities include design, supply, installation, construction and operational management of drinking water, waste water treatment, industrial water treatment and desalination plants.
Meanwhile, Indian equity markets extended gains for the third straight session today. Sensex ended 44 points higher at 38,843 and Nifty 50 index gained 5 points to 11,472.
By Aseem Thapliyal