Hitachi Energy launches QIP to raise up to ₹3,000 crore; check issue price and more details

Hitachi Energy India Ltd initiated a Qualified Institutions Placement (QIP) of equity shares on Monday, March 10. The base issue size is of up to ₹2,000 crore with an option to upsize to ₹3,000 crore, people in the know told CNBC-TV18.

The company has set the floor price at ₹12,112.50 per share, which is at a  4% discount to the last closing price of ₹12,670 per share on the NSE. The indicative issue price, can be at a discount of not more than 5% from the floor price,  around ₹11,507 per share, which is at a 9% discount to the closing price.

The company's board had approved the fund raise of ₹4,200 crore on January 18, 2025.

The same will lead to dilution of up to 6.15% at the indicative issue price.

The proceeds from the fund raise are to be used for funding capex requirements, funding the working capital requirements and for general corporate purposes.

The preliminary placement document and application form have been adopted, and bids from qualified institutional buyers (QIBs) will be invited. The issue price will be determined in consultation with the book running lead managers. The company will file the Preliminary Placement Document with BSE and NSE.

Last week, brokerage firm Goldman Sachs published a bullish report on Hitachi Energy, citing a strong order pipeline, particularly in high-voltage direct current (HVDC) projects, as a key driver of future growth.

The report also emphasised the broader infrastructure spending that could favour Hitachi Energy. Goldman Sachs estimates that grid capital expenditure (capex) in India will reach $100 billion by FY32 and could expand further to $500 billion by FY50. As a key player in the industry, Hitachi Energy is poised to capitalise on this massive investment wave.

The report also emphasised the broader infrastructure spending that could favour Hitachi Energy. Goldman Sachs estimates that grid capital expenditure (capex) in India will reach $100 billion by FY32 and could expand further to $500 billion by FY50. As a key player in the industry, Hitachi Energy is poised to capitalise on this massive investment wave.

Shares of Hitachi Energy India Ltd ended 2.91% lower at ₹12,670 on the BSE.

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