Lloyds Metals and Energy likely to launch Rs 1,200 crore QIP this week

Lloyds Metals and Energy is likely to launch a qualified institutional placement (QIP) on Thursday to raise about Rs 1,200 crore, according to sources. The company plans to sell its shares at a 5% discount to the market price, said one of the sources.

Lloyds Metals and Energy shares rallied 5% on Thursday, closing at Rs 775. The stock has gained 31% in the last six months, compared to an 11% rise in the Sensex index.

In March, the board of Lloyds Metals approved raising up to Rs 5,000 crore through QIP in one or more tranches.


On Thursday, the board also approved a proposal to issue up to 4 crore convertible warrants on a preferential basis, with up to 1.5 crore warrants proposed to be issued to the company’s promoters and the remaining to non-promoters.

In March last year, Sunflag Iron and Steel Company bought 11.89% stake in Lloyds Metals after converting optionally fully convertible debentures (OFDC's).