New Delhi, July 21 (SocialNews.XYZ) Shares of Ather Energy fell about 3 per cent in early trade on Tuesday after the electric two-wheeler maker announced closing of its Rs 1,300 crore Qualified Institutional Placement (QIP), which witnessed robust demand from institutional investors.
On the BSE, the stock declined as much as 3.02 per cent to an intraday low of Rs 1,258. At around 12:40 pm, it was trading at Rs 1,277.45, down 1.53 per cent from the previous close.
The decline came even as the company announced that it had raised Rs 1,300 crore through the QIP by allotting 1,08,15,307 equity shares to eligible institutional buyers at an issue price of Rs 1,202 per share.
The issue price was at a premium to the regulatory floor price of Rs 1,169.70, reflecting strong institutional appetite despite being at a discount to the prevailing market price when the issue was launched.
According to the company, the QIP attracted marquee domestic mutual funds and leading global institutional investors, with the issue reportedly being oversubscribed more than eight times.
The proceeds from the fundraise will strengthen Ather Energy's balance sheet, reduce its reliance on debt and provide financial flexibility to invest in research and development, manufacturing capacity expansion and other growth initiatives.
Following the allotment, the company's paid-up equity share capital has increased to more than Rs 39.41 crore.
The fundraising comes as Ather Energy continues to expand its presence in India's electric two-wheeler market through the rollout of its family scooter, the Ather Rizta, while scaling up the Ather Grid fast-charging network across the country.
On the BSE, the stock has touched a 52-week high of Rs 1,343 and a 52-week low of Rs 329.15.
In its latest reported quarter, Ather Energy narrowed its consolidated net loss to Rs 100.23 crore in the January-March quarter from Rs 234.36 crore in the corresponding period of the previous financial year, according to a regulatory filing.
Source: IANS
About Gopi
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz