PTC Industries shares drop 3% after board approves up to Rs 1,800 crore QIP

PTC Industries Ltd saw its shares falling 3 per cent in Monday's trade after its board approved raising of funds aggregating up to Rs 1,800 crore through Qualified Institutions Placement (QIP). PTC Industries said the approval is enabling in nature, intended to facilitate preparatory steps including engagement with merchant bankers, advisors and other intermediaries.  The proposed utilisation of the net proceeds, the issue size, pricing and timing will be placed before the board and the audit committee for consideration and approval before the issue is launched, PTC Industries said.

Following the development, the stock fell 3.33 per cent to hit a low of Rs 17,432.10 on BSE.

The PTC Industries board approved the proposal to give loans, guarantees and/or make investments up to Rs 2,000 crore or 60 per cent of the paid-up share capital, free reserves and securities premium account of the company or 100 per cent of free reserves and securities premium account of the company, whichever is more, outstanding at any given point of time.

The PTC Industries board approved the proposal for an increase in the borrowing limits of the company to Rs 600 crore from Rs 350 crore, subject to shareholders' approval. 

Arihant Capital in  a May note, highlighting the company's Q4 conference call,  suggested that PTC Industries is entering a rebuilding and scaling phase, with management targeting 30–50 per cent AUM growth over the medium term, supported by a strong sanction pipeline and improving disbursement conversion. Growth is expected to remain calibrated and quality-focused, with emphasis on higher-yield lending, sector diversification, and structured finance opportunities. 

"Asset quality is likely to stay stable with no incremental slippages, while yields should improve through portfolio remix and replacement of lower-yield assets. Funding costs are expected to decline gradually as legacy borrowings roll off, supporting margin expansion. Overall, management remains focused on profitable growth, balance sheet strength, and disciplined capital allocation to drive sustainable long-term value creation," Arihant Capital noted.