Inox Leisure raises Rs 250 crore from qualified institutional placement

Leading multiplex chain Inox Leisure raised Rs 250 crore from a qualified institutional placement of shares

Leading multiplex chain Inox Leisure on Friday raised Rs 250 crore from a qualified institutional placement (QIP) of shares.

The QIP issue, involving selling over 98 lakh shares at Rs 255 a share, which carry a face value of Rs 10, was oversubscribed 3.5 times by marquee global and domestic institutional investors, the company said in a statement.

The QIP, which opened on November 9 and closed on November 12, got subscription from investors like the Abu Dhabi Investment Authority, Eastspring Investments, ICICI Prudential, Birla Mutual Fund, Nippon India Mutual Fund, DSP Mutual Fund and Sundaram Mutual Fund, among others.

The issue allocation is around 69 per cent and 31 per cent to domestic and foreign investors respectively, the company said.

Siddharth Jain, a director at Inox Group said, The response to the QIP issue endorses the faith investors have in the future of our business model.

The funds will be utilised to meet capital expenditure requirements for the ongoing and future projects, to sustain growth, for business expansion and to improve financial leveraging strength apart from meeting working capital requirements and debt repayment.

Inox Leisure operates 147 multiplexes with 626 screens across 68 cities.

The company's shares were trading nearly 1 per cent down over its previous close at Rs 266.75 on the BSE.