JTL Industries shares jump 5% amid capex and fundraising plans

Shares of JTL Industries rose during the trading session on Tuesday after the company shared multiple business updates with the exchanges related to fund raising and capacity expansion. One filing was uploaded after market hours on Monday, while the other was filed on Tuesday.

JTL Industries is embarking on a groundbreaking journey with the establishment of a mega capacity augmentation project in Maharashtra through its wholly owned subsidiary JTL Tubes Limited, said the company in an exchange filing on Tuesday.

To finance this ambitious project, JTL is set to raise Rs 1,310 crore through various routes, including but not limited to qualified institutional placement (QIP). This infusion of funds will be orchestrated from both promoter and non-promoter groups, said the filing.

"The promoter and promoter group is committed to contributing Rs 540 crore, while the public, non-promoter group will play a pivotal role with the contribution of Rs 270 crore. The remaining Rs 500 crore will be garnered through the QIP route," it added.

The company will issue securities by way of QIP for aggregate amount not exceeding Rs 500 crore, in one or more tranches, including Green Shoe option, if any. Other than the QIP route, the company will also consider to issue convertible warrants on a preferential basis, said a separate exchange filing.

The company will issue and allot 2,00,00,000 fully convertible warrants to the promoter and promoter group category and 1,00,00,000 warrants to the non-promoter, public category at an issue price of Rs 270 apiece aggregating amount of up to Rs 810 crore.

Following the announcements, shares of JTL Industries gained about 5 per cent to Rs 252.75 on Tuesday, commanding a total market capitalization of close to Rs 4,300 crore. The scrip had previously settled at Rs 240.75 in the previous trading session on Monday.

JTL Industries is a dynamic steel tube manufacturing company which specializes in producing ERW black pipes, pre-galvanized and galvanized steel pipes, large diameter steel tubes and  pipes, and hollow structure. The company has manufacturing facilities in Punjab, Maharashtra, and Chhattisgarh.

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