Bharat Forge has fixed the floor price for its planned qualified institutional placement at Rs 1,947.70 per equity share. The company informed stock exchanges on Thursday about the decision, which follows board and shareholder approvals secured earlier this year.
The Investment Committee of the Board, called the Committee for Strategic Business, met on September 17 to approve the Preliminary Placement Document and the application form for the issue. The same meeting authorised the opening of the QIP on the same day.
QIP floor price and issue price
The floor price was calculated under Regulation 176(1) of the SEBI ICDR Regulations. The relevant date for the pricing formula, as defined under Regulation 171(b)(i) of the same regulations, was also set as September 17. Bharat Forge may offer a discount of up to 5% on the floor price, a discretion the shareholders had already cleared through a postal ballot resolution dated September 11.
The final issue price will be decided by the company along with the lead managers appointed for the placement. The Preliminary Placement Document was to be filed with the BSE and the NSE on the same day, the filing noted.
Bharat Forge board approval
The QIP itself was cleared by the Bharat Forge board at its meeting on August 10. Shareholders ratified the plan through the postal ballot that concluded on September 11. Thursday’s committee meeting was the step that set the issue in motion, fixing the price band’s floor and clearing the way for the placement document to go out to institutional investors.
Trading window shut for insiders
Bharat Forge said its trading window for designated persons had been closed since September 15 under the company’s insider trading code. It will stay shut until further notice, the company said, a standard precaution during share sales of this kind.
About Bharat Forge
Bharat Forge is the flagship company of the Kalyani Group, headquartered in Pune. Founded in 1961, it is a global manufacturer of forged and machined components serving the automotive, defence, aerospace, energy, railways, marine and industrial sectors. The company describes itself as a technology-driven manufacturer that designs, engineers and tests high-performance components, and it has been expanding its presence in defence, aerospace and e-mobility.
Bharat Forge share price today
Bharat Forge’s share price increased 3.2% as of intraday on September 18. The company’s share price decreased 5.49% in the past month. However, Bharat Forge’s share price has increased 56.33% in the last year.