Shares of Titagarh Rail Systems rallied 4% on 8 December after the company launched a QIP (qualified institutional placement) to raise Rs 700 crore.

The company has set Rs 976 apiece as a floor price for the QIP, which is equal to its closing price on 7 December. Nuvama Wealth Management is the book-running lead manager for the QIP.

Through this QIP, the company plans to repay its outstanding debt, fund working capital requirements, and for general corporate purposes.

In its filing, the company said that it will meet on 12 December to determine the QIP issue closing date and the price at which the equity shares will be issued and allotted.

In its exchange filing on 20 November, the company said, “ABB and Titagarh Rail Systems will work together to supply propulsion systems for metro projects in India. The agreement would include technology transfer and licensing as part of the government’s ‘Make In India’ initiative.”

At 3:15 pm, the shares of Titagarh Rail Systems were trading 1.93% higher at Rs 1,002.75 on NSE.