Wheels India shares gain nearly 5% after board approves proposal to raise ₹400 crore via QIP

Shares of Wheels India Ltd. gained nearly 5% on Friday, July 10, after the company said it is looking at raising up to ₹400 crore via qualified institutional placement (QIP) and /or other securities.The company informed the exchanges that its board has approved the fund raise via preferential allotment, including QIP. The same is subject to shareholder and other regulatory approvals, as required.

The proposal plans to issue equity shares of face value ₹10 and / or equity linked instruments, in one or more tranches.
At the end of the March quarter, promoters and the promoter group held 58.31% stake in Wheels India, while public shareholders held 41.69% stake.
Wheels India reported a positive set of earnings in the fourth quarter. Its net profit increased 51.8% to ₹58 crore from ₹38.2 crore last year. Its revenue was up 24% at ₹1,584 crore from ₹1,277.2 crore in the previous fiscal.

The company’s earnings before interest, tax, depreciation and amortization (EBITDA) increased 28.7% to ₹146 crore from ₹113.4 crore in the previous year. Its margins expanded to 9.2% from 8.9% in the year-ago period.

Shares of Wheels India increased 4.6% to hit an intraday high of ₹1,512 apiece on Friday. The stock was up 3.3% at ₹1,493.3 apiece at 2.10 pm. It has declined 5.6% in the past month and has gained 12.9% this year, so far.

Also Read: Indian Bank Q1 Results: PSU Lender jumps 9% on 17% core income growth, stable asset quality