KEC International rises 5% as co sets floor price for Rs 4,500-crore QIP

The company had approved the proposal to raise Rs 4,500 crore on July 26

KEC International shares advanced 4.6 per cent intraday on Wednesday after the company launched its qualified institutional placement (QIP) isse to raise Rs 4,500 crore. The stock climbed to a day's high of Rs 1,029 per share on the BSE following the development.

At around 12:25 PM, shares of KEC international were up 2.21 per cent at Rs 1,005.2 per share on the BSE. In comparison, the BSE Sensex traded 0.13 per cent lower at 84,803.65 around the same time.

KEC International's board approved the floor price of Rs 976.64 per share for the Rs 4,500-crore QIP issue, after market hours on Tuesday.

On July 26, the board had given its nod to raise funds amounting to Rs 4,500 crore through various methods that were under consideration at the time. It had also approved the issuance of non-convertible debentures (NCDs) amounting to Rs 1,500 crore back then.

KEC International had a strong order book in the quarter ended June 30, with the highest ever order book and L1 of over Rs 42,000 crore during the period. Additionally, tenders under evaluation and in the pipeline were of over Rs 1,50,000 crore.

In the Transmission and Distribution (T&D) segment, as of June 30, the company's order book was worth Rs 26,500 crore across India, the Middle East, SAARC, Africa, America, East Asia Pacific, CIS, and Australia.

Meanwhile, as of June 30, in the civil segment, the company had an order book of Rs 10,000 crore, and in railways, it secured new orders of over Rs 500 crore.

On September 22, the company bagged a new order worth Rs 1,003 crore across its various businesses. Among others, it secured an order for a Tunnel Ventilation system  in the railway segment, and other associated works in India.

Further, in the civil segment, KEC International secured an order in the industrial segment for Civil and Mechanical works for a steel plant in India, the company stated in an exchange filing. Lastly, in the cables segment, the business secured orders for the supply of various types of cables in India and overseas.

In the past one year, shares of KEC International have gained 49.7 per cent, compared to the BSE Sensex's rise of 28.6 per cent during the period.