JK Cement Ltd has initiated a qualified institutional placement offering (QIP) in order to raise funds from institutional investors to meet their capital expenditure needs. JK Cement told the exchanges that it had set a floor price of Rs. 732.42 per share for the QIP offering.

Qualified institutional placement (QIP) is a capital-raising tool whereby a listed company can issue equity shares, fully and partly convertible debentures, or any securities other than warrants which are convertible to equity shares to a qualified institutional buyer (QIB).

According to JK Cement the funds raised from the QIP, which are being managed by Edelweiss Financial Services Ltd, will be used to expand its factories. JK Cement stated, “We are proposing to enhance the cement grinding capacity at Mangrol and Nimbahera by 1 million tonnes per annum (MTPA) each. In addition, we also intend to increase the existing clinker capacity at Mangrol by 2.48 MTPA.”

The company also added, “The surplus clinker production will be utilised to serve the split grinding units proposed to be set up at Aligarh and Balsinor, and also to meet the additional clinker requirement at Nimbahera plant due to the brownfield expansion.”

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