Shares of Texmaco Rail were trading in the green on 22 November after the company launched its QIP (Qualified Institutional Placement) to raise Rs 750 crore.

The company has launched a QIP to raise Rs 750 crore at a floor price of Rs 135.90 per share, which is at a 9% discounted price from the previous close on 21 November of Rs 149.15 on NSE. The issue also included an option of green shoe for Rs 200 crore.

QIP is a way to issue shares to the public without going through the standard regulatory compliance. Qualified institutional buyers are the only people who are allowed to purchase shares in the QIPs. Moreover, the green shoe option will enable underwriters to sell more shares than the original issue amount.

The rail solution provider is planning to use the funds raised through the QIP issue for various purposes within its different tranches, including repayment of borrowings, funding capital expenditure, general corporate purposes, and supporting working capital needs.

The share of Texmaco Rails has been labelled a multi-bagger as it has gained more than 177% in a six months duration.

In its quarterly report for the July-September quarter, the company reported a 70% year-on-year (YoY) increase in its consolidated net profit to Rs 20 crore from Rs 11.88 crore reported in the year-ago quarter.

The company’s consolidated revenue during the quarter was Rs 805 crore, which is a 66% YoY growth from Rs 484 crore reported in the same quarter for the previous fiscal year.

At 12:40 pm, the shares of Texmaco Railm were trading 0.77% higher at Rs 150.30 on NSE.