SRF hits a fresh record high on successful fundraising through QIP issue

Shares of SRF hit a fresh record high of Rs 4,523.80, up 2 per cent on the BSE in the early morning deal on Monday after the company successfully raised Rs 750 crore from the institutional investors through qualified institutional placement (QIP).

The stock surpassed its previous high of Rs 4504 touched on Friday. In the past two weeks, it has outperformed the market by gaining 10 per cent, as compared to a 3.3 per cent rise in the S&P BSE Sensex last week.

SRF said the QIP Committee at its meeting held on October 17, 2020, approved allotment of 1.76 million equity shares to eligible qualified institutional buyers (QIB) at the issue price of Rs 4,250 per share, aggregating to approximately Rs 750 crore.

ICICI Prudential Mutual Fund, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company, Nippon Life India Asset Management, and SBI Mutual Fund have allotted shares in QIP.

The company plans to use the proceeds of the share sale for funding suitable organic and inorganic growth; ongoing capital expenditure and pre-payment and/or repayment of outstanding borrowings.

At 09:39 am, SRF was trading flat at Rs 4,470 on the BSE, as compared to a 1 per cent rise in the S&P BSE Sensex. A combined around 88,000 equity shares were changing hands on the counter on the NSE and BSE.