Centum Electronics shares rose over 5 percent on March 17 and closed at Rs 1,350 per share. This development comes after the company announced that it has raised Rs 210 crore through its qualified institutional placement (QIP).
Notably, Prashant Jain’s 3P India Equity Fund acquired 3.52 percent stake (over 5.17 lakh equity shares) in the company by participating in the QIP. This took the firm’s total stake in the company to 5.47 percent.
The company announced that the QIP comprises 18.10 lakh shares at an issue price of Rs 1,160 per equity share.
However, this is around Rs 60 lower than the floor price of Rs 1,220 per share. The QIP was open from March 10 to March 13. Key players participating in the QIP include HDFC Mutual Fund, Shubhkam Ventures and 3P India Equity Fund.
HDFC Mutual Fund bought nearly 33 per cent of the total shares offered as part of the QIP. Post the QIP, the total equity capital of the company rose to Rs 147.1 crore.
Earlier announcing the QIP, the electronics systems design and manufacturing company said it intends to ‘deliver complete systems to the armed services’, and that it is executing large projects.
“We are actively working on large system-level opportunities in collaboration with our technology partners,” it said in an exchange filing.
During the December quarter, Centum’s consolidated revenue from operations declined 6 percent year-on-year but grew nearly 8 percent quarter-on-quarter.
Consolidated EBITDA margin stood at 6.9 percent and standalone EBITDA margin at 11.8 percent in Q3 FY25. “Our margins were impacted mainly by losses at our Canadian subsidiary and lower utilisation due to delays in the commissioning of new projects in France,” Centum had said after its December quarter earnings.
