Greenply Ind closes over 1% higher as firm drops QIP plan

NEW DELHI: Shares of Greenply Industries climbed over 1 per cent in Wednesday’s trade after the company dropped a plan to allot shares worth up to Rs 100 crore to qualified institutional buyers ( QIBs).

Earlier in the day, the company's board had approved the preliminary placement document on the matter. The proceeds were to be used for setting up a new medium density fiberboard (MDF) manufacturing unit in Chittoor, Andhra Pradesh.

The company informed this to BSE in a filing last evening. Following the development, the stock rose 1.22 per cent to hit a high of Rs 264.60 on BSE. “With reference to the earlier letter dated August 09, 2016, regarding the outcome of the QIP committee meeting, Greenply Industries has informed BSE that the said announcement has been withdrawn by the company,” Greenply told the exchanges.

Shares issued via qualified institutional placements reflect demand for the company's stock among institutions and is seen as a positive by the market.

Shares of the company closed at Rs 265 apiece, up 1.38 per cent from its previous close on Bombay Stock Exchange (BSE).