Deep Industries hits record high; stock gain 35% over QIP price

The stock hit a record high of Rs 313, up 37% against qualified institutional placement price of Rs 228 per share

Deep Industries gained 8% to Rs 313, also its record high on the BSE, in otherwise range-bound market on back of heavy volumes.

The stock is trading at 37% premium over its qualified institutional placement (QIP) price of Rs 228 per share.

On December 9, 2016, Deep Industries has raised a total amount of Rs 63.84 crore by issuing 2.8 million equity shares of face value Rs 10 each to Qualified Institutional Buyers (QIB). The funds raised are intended to be utilized to meet long term working capital requirements and thereby business growth.

The company said the shares were subscribed by foreign institutional investors (FIIs) & foreign portfolio investors (FPIs).

“With a healthy order pipeline, strong customer relationships and a long track record in end to end project execution, we shall be a natural beneficiary of the increasing prospects in the Indian Oil?Gas Services space,” Paras Savla, chairman & managing director said.

“Deep has many large clients and foresees a healthy order book going forward. With this fund raise we will get funding flexibility to capitalize on the opportunities available in the Oil?Gas Services space and shall endeavor to be a frontrunner in this space,” Savla said.

Deep Industries had reported a more than doubled consolidated net profit at Rs 33 crore in the first half (April to September) of the current financial year 2016-17 (FY17). It had profit of Rs 15 crore during the same period of FY16.

The stock has strong run-up in past three months, appreciating 61% from Rs 195 on September 20, as compared to 7.5% decline in the S&P BSE Sensex.

At 11:01 am; it was up 6% at Rs 309 against a marginal 0.09% rise in the benchmark index. The trading volumes on the counter nearly doubled with a combined 663,060 shares changed hands on the BSE and NSE so far.