New Delhi, January 1, 2024 – JK Tyre & Industries Limited, a frontrunner in the Indian tyre manufacturing sector, has triumphantly wrapped up its fundraising initiative, gathering a substantial Rs. 500 crore via a Qualified Institutional Placement (QIP). The QIP, a testament to the company’s market standing, was set at Rs. 345 per share. This pricing included a significant premium of Rs. 343 over the face value of Rs. 2 per share.
This financial move has garnered an exceptional response, attracting the interest of top-tier investors. Among them are noteworthy names in Indian mutual funds, esteemed insurance companies, and prominent foreign institutional investors, highlighting the widespread confidence in JK Tyre’s market position and future prospects.
Dr. Raghupati Singhania, the Chairman and Managing Director of JK Tyre, expressed his satisfaction with the successful completion of the QIP. “This is a pivotal moment in our corporate journey,” he remarked. The enthusiastic participation of renowned investors not only marks a significant achievement for the company but also reflects their strong belief and confidence in our growth narrative and potential.
The funds raised through the QIP are earmarked for specific strategic purposes. Primarily, they will be utilized for growth capital expenditures, ensuring the company continues its trajectory of expansion and innovation. Additionally, a portion of the funds will be allocated towards strengthening the company’s balance sheet, positioning JK Tyre for sustained success and stability.
The entire process of the QIP was adeptly managed by Emkay Global Financial Services Ltd, who acted as the sole Lead Manager for the issue. Their expert handling of the fundraising underscores the proficiency and strategic planning that went into making this financial endeavor a resounding success.