Apar Industries trades lower, Rs 1,000-crore QIP launched

Apar Industries was trading a percent lower on November 24, a day after the firm launched a qualified institution placement (QIP) issue to raise Rs 1,000 crore. The floor price for the issue has been fixed at Rs 5,540.33 a share.

At 9.16 am, the stock was trading at Rs 5,632.35 on the NSE, down 0.89 percent. On the previous day, Apar Industries gained 1.94 percent at close at Rs 5,686 on the NSE. Based on the closing price, the floor price for the offer is at a 2.56 percent discount.

According to the SEBI regulations, the company at its discretion may offer a discount of not more than 5 percent on the floor price.

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The firm’s share issue committee will meet on November 29 to consider and determine the issue price of the equity shares, including any discount.

Apar Industries is a manufacturer and supplier of conductors, transmission cables, specialty oils, polymers, and lubricants.

“Apar Industries continues to be a proxy play on the domestic power sector as a huge chunk of its revenues are linked to power infrastructure,” YES Securities said.

The company’s focus on value-added products would help it mitigate the risk from lower-margin business and help gain market share both in India and overseas.

“We assign a target multiple of 22x FY25E based on strong pipeline and near-term visibility for both conductors and cables in India and global markets,” YES Securities analysts said.

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