Plastics products including moulded furniture maker Nilkamal Ltd has raised Rs 60 crore through issue of shares under a qualified institutional placement. The company’s board had approved plans to raise up to Rs 100 crore through institutional investors early this year.
The firm allotted 2.41 million shares at a price of Rs 280.35 a piece or around 10% discount to the existing share price. Nilakamal scrip has shot up over four times over the last one year.
Besides raising cash, it would also allow the firm to bring in more institutional investors. As of March end, the company had just about 4% institutional share ownership. With the QIP that diluted the equity base by around 16%, institutional fund holding would go up.
Nilkamal is engaged in four key businesses: material handling crates, containers and bins; moulded furniture such as chairs, tables and cabinets; custom mouldings & OEM supplies for specific customers besides @home, the home store retail chain.
For the year ended March, it had consolidated net sales of Rs 1,098.3 crore with net profit of Rs 51.5 crore.