JK Tyre raises £47 million through QIP

India’s JK Tyre & Industries Limited has successfully concluded its fund-raising plans of Rs 5 billion (£47.2 million) by way of Qualified Institutional Placement (QIP). The tyre maker will utilise funds gained through the QIP for capital expenditure projects and to strengthen its balance sheet.

The company reports that the QIP was priced at Rs.345 per share, including a premium of Rs.343 per share with a face value of Rs.2 per share. According to the company, it received an “overwhelming response” to the QIP from marquee investors including Indian mutual funds, insurance companies and foreign institutional investors.

“We are pleased to have successfully completed QIP of Rs 500 crore (Rs 5 billion). This is an important milestone in our corporate journey,” states Dr Raghupati Singhania, chairman and managing director of JK Tyre. “Participation of several reputed investors in the issue endorses their faith and confidence in the Company’s growth story. QIP funds will be used for the purpose of growth capex and strengthening of the balance sheet.”

Emkay Global Financial Services Ltd managed the issue as sole Lead Manager.