Wheels India launches ₹250 crore QIP at indicative price of ₹2,088 per share

Leading manufacturer of wheels for trucks, agricultural tractors, and passenger vehicles, Wheels India Ltd, on Thursday (September 24) has launched a ₹250 crore Qualified Institutional Placement (QIP) at an indicative issue price of ₹2,088 per share, with a discount of up to 4.3%.

The QIP is expected to result in an equity dilution of approximately 4.7% of the company's total equity. The company plans to use the proceeds from the issue for debt repayment. The indicative issue size is ₹250 crore, while the indicative issue price has been set at ₹2,088 per share.

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Wheels India has a total market capitalisation of ₹5,311.74 crore, supported by an exceptional 152.16% year-to-date (YTD) rally that has pushed the stock up from its January opener of ₹864.85. The equity currently trades within a wide 52-week range of ₹705.85 to ₹2,498.00, carries a price-to-earnings (P/E) multiple of 32.53, and offers income investors a 0.66% dividend yield.

The company manufactures wheels for trucks, agricultural tractors, passenger vehicles and construction equipment, besides air suspension systems for trucks and buses, and industrial components for the construction and windmill industry. It has manufacturing plants in Tamil Nadu, Maharashtra, Uttar Pradesh and Uttarakhand.

Shares of Wheels India Ltd ended at ₹2,186.85, down by ₹53.85, or 2.40%, on the BSE.

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