Ather Energy shares slip 3 pc after raising Rs 1,300 crore via QIP
New Delhi, July 21 (IANS) Shares of Ather Energy fell about 3 per cent in early trade on Tuesday after the electric two-wheeler maker announced closing of its Rs 1,300 crore Qualified Institutional Placement (QIP), which witnessed robust demand from institutional investors.
On the BSE, the stock declined as much as 3.02 per cent to an intraday low of Rs 1,258.
The decline came even as the company announced that it had raised Rs 1,300 crore through the QIP by allotting 1,08,15,307 equity shares to eligible institutional buyers at an issue price of Rs 1,202 per share.
The issue price was at a premium to the regulatory floor price of Rs 1,169.70, reflecting strong institutional appetite despite being at a discount to the prevailing market price when the issue was launched.
According to the company, the QIP attracted marquee domestic mutual funds and leading global institutional investors, with the issue reportedly being oversubscribed more than eight times.
The proceeds from the fundraise will strengthen Ather Energy's balance sheet, reduce its reliance on debt and provide financial flexibility to invest in research and development, manufacturing capacity expansion and other growth initiatives.
Following the allotment, the company's paid-up equity share capital has increased to more than Rs 39.41 crore.