Mold-Tek Packaging slips as QIP issue begins

Mold-Tek Packaging fell 2.92% to Rs 770.35 after the company launched the QIP (qualified institutional placement) of its equity shares.

The company said that its QIP Committee, at the meeting held yesterday (14 December 2021), has approved the opening of the qualified institutions placement (QIP). It also approved and adopted the preliminary placement document in connection with the QIP.

The floor price of the QIP issue is Rs 722.40 per equity share, the company said in a regulatory filing. The floor price is set at a discount of 8.96% to Tuesday's closing price of Rs 793.55 per share.

A meeting of the fund raising committee of the company shall be held on Friday, 17 December 2021, to consider and determine the issue price of equity shares to be issued pursuant to the QIP.

In its draft placement document filed with the bourses, Mold-Tek Packaging said that it intends to utilize the net proceeds from the QIP issue for ongoing and future capital expenditure requirements of the company, working capital requirements, debt repayment and general corporate purposes.

Mold-Tek Packaging is a packaging company, which is involved in the manufacturing of plastic packaging containers. The company manufactures rigid plastic packaging containers through injection molding technology for paints, lubes, oils, food, fast-moving consumer goods (FMCG) and other sectors.

The company's consolidated net profit rose 30.68% to Rs 17.59 crore on a 33.99% increase in net sales to Rs 159.53 crore in Q2 FY22 over Q2 FY21.

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