Shares of PSP Projects Ltd were trading in the green and 4% higher on 23 April after the company launched a qualified institutions placement (QIP), which aimed to raise Rs 244 crore.

The company has set a floor price of Rs 682.59 per share for the QIP, but can offer a discount of up to 5% to the investors that indicates the issue price of the QIP to be of Rs 670 per share.

When a corporation offers its shares in a QIP, the floor price is the lowest price it can give. Set in place to make sure the corporation doesn’t undervalue its shares; it is calculated by following regulatory criteria.

However, the suggested price is the price at which the business plans to sell its shares during the QIP. It serves as a preliminary estimate to help prospective investors understand what the offering’s anticipated price will be.

On 9 February, the PSP Projects board approved QIP, and on 4 April, shareholders approved it via mail ballot. PSP’s fund-raising committee authorised the preliminary placement document, floor price, and issue opening during their meeting on 22 April. The company has not yet disclosed how it intends to spend the money raised.

At 12:05 pm, the shares of PSP projects were trading 1.95% higher at Rs 702.70 on NSE.