KEC International shares rise 4.6% as it unveils QIP with ₹976.64 floor price

KEC International's share price witnessed a significant boost on Wednesday, rising by 4.6% following the company's announcement of a Qualified Institutional Placement (QIP) to raise funds. The company has set the floor price at ₹976.64 per share, just below its previous close of ₹983.45 on the Bombay Stock Exchange (BSE).

The stock opened at ₹989.75 on Wednesday, reflecting a slight increase from Tuesday’s closing price. It continued to gain momentum, reaching a high of ₹1,029.00, just shy of its 52-week high of ₹1,039. This marks a remarkable 67% rise in KEC International's share price since the beginning of 2024, delivering substantial returns for investors.

KEC International launches QIP to raise funds

KEC International’s latest QIP is designed to raise funds through institutional investors, with a set floor price of ₹976.64 per share. According to the company’s statement, it may offer a discount of up to 5% on the floor price.

The board first approved the QIP on July 26, 2024, with shareholders ratifying it through a special resolution during the annual general meeting held on August 22, 2024. On September 24, 2024, the company’s board of directors authorised the QIP's launch and finalised the floor price, as per SEBI regulations.

Strong order book boosts revenue prospects

In addition to the QIP, KEC International has made headlines with consistent order inflows, further strengthening its financial outlook. Recently, the company secured new orders worth ₹1,003 crores across its various business segments.

According to Vimal Kejriwal, Managing Director and CEO of KEC International, the company’s railway division has strengthened its position in the tunnel ventilation sector. In contrast, the civil division has expanded its portfolio by winning a prestigious new client in the metals and mining segment.

With this latest addition, the company’s total order intake for 2024 exceeds ₹12,300 crores, marking a 60% growth over the previous year. Notably, approximately 70% of these orders are attributed to the company’s Transmission & Distribution (T&D) business.

Key takeaways

• Share price surge: KEC International's share price jumped by 4.6% following the announcement of its QIP launch, reaching ₹1,029.00 on the BSE.
• QIP launch: The company has set the floor price at ₹976.64 per share for its QIP, approved during the AGM in August 2024.
• Order inflow: KEC International's strong order book, with ₹12,300 crores in new contracts, enhances revenue visibility, with 70% of orders from the T&D segment.

KEC International’s strong performance in 2024 has solidified its standing as a prime player in share market investment, attracting interest from investors looking for high returns.