Ashoka Buildcon pares losses after company raises Rs 500 crore via QIP route

NEW DELHI: Infrastructure firm Ashoka Buildcon plunged as much as 12.75 per cent in intraday trade on Monday but later pared losses as the company said it has raised Rs 500 crore through qualified institutional placement (QIP) route to fund its growth plans.

The stock ended in red, down 4.03 per cent or Rs 6.80 at Rs 161.8.

Ashoka Buildcon has successfully closed a QIP to raise Rs 500 crore, the company said in a filing to the BSE.

The company has issued 2.84 crore equity shares of Rs 5 at Rs 175.80 per share, it added.

The overall allocation to foreign institutional investors is about 40 per cent and domestic insurance firms accounted for the balance, ensuring a well diversified representation and demand from all significant global investors, Ashoka Buildcon said.

Ashoka Buildcon MD Satish Parakh said: "We will use the proceeds to fund our growth plans that have brightened with strong projects pipeline combined with improving economic environment in India."

Ashoka Buildcon is one of the largest highway developers in the country with a portfolio of over 28 public private partnership projects.

It is also active in power transmission and distribution sector with various power projects in Tamil Nadu, Maharashtra, Chhattisgarh and Bihar.

Last year, the company's shareholders had approved raising of up to Rs 850 crore through issue of shares to qualified institutional buyers.

Shares of the company were today trading at Rs 162.50 per scrip, down 3.68 per cent during the afternoon session on the BSE.