Wheels India, Inox Green shares rise up to 5% as companies launch QIPs; check details

Wheels India Ltd and Inox Green Energy Services Ltd shares rose in early deals on Friday after the two companies launched qualified institutional placements (QIPs) to raise funds. Wheels India launched a Rs 250 crore QIP, while Inox Green Energy Services is looking to raise Rs 300 crore through the issue.

Wheels India shares rose 4.94% on Friday, hitting a high of Rs 2,291.95, compared with the previous close of Rs 2,184.15. Inox Green Energy Services shares rose 1.92%, touching a high of Rs 177.60, compared with the previous close of Rs 174.25.

Inox Green 

Inox Green Energy Services said its operations committee approved the opening of the QIP on September 24 and set the floor price at Rs 174.36 per share, based on the pricing formula prescribed under SEBI's ICDR Regulations. The company may offer a discount of up to 5% on the floor price at its discretion.

Inox Green is looking to raise Rs 300 crore through the QIP, with the base offer comprising around 1.81 crore shares and an option to issue another 60.4 lakh shares. Emkay Global Financial Services is the bookrunner for the issue. The company plans to use the proceeds to invest in its subsidiary Vibhav Energy towards part-payment for the acquisition of Wind World (India)'s operations and maintenance business.

The issue price of Inox Green's equity shares will be determined in consultation with the book-running lead manager. The company's trading window has also been closed from September 24 and will remain shut until 48 hours after the issue price is determined.

Wheels India

Meanwhile, Wheels India's Fundraise Committee approved a floor price of Rs 2,197.10 per share. The company may issue up to 12 lakh shares, while the indicative price has been set at Rs 2,088. The issue can be offered at a discount of up to 5% to the floor price, subject to applicable regulations.

The proceeds from Wheels India's QIP will be used for the repayment or prepayment, partly or fully, of certain outstanding borrowings. ICICI Securities is the sole lead manager for the issue. The company said the final issue price will be determined in consultation with the lead manager.

Wheels India's Fundraise Committee is scheduled to meet on September 25 to consider and approve the issue price, including any discount permitted under the SEBI ICDR Regulations. The trading window has been closed with immediate effect until September 26 for the QIP.