Axiscades Technologies zoom 8% on Rs 500-crore QIP launch

Shares of Axiscades Technologies jumped over 8 percent on January 11 after the company launched a qualified institutional placement (QIP) issue to raise up to Rs 500 crore.

The engineering and technology solutions firm’s board has set the floor price for the issue at Rs 696.70, a discount of 9.9 percent from its previous close on the National Stock Exchange (NSE).

The board approved the fundraising in November and said it may offer a discount of not more than 5 percent to the floor price.

At 9.32 am, Axiscades Technologies was trading at Rs 836.95 on the NSE, 8 percent higher from the previous close.

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A successful QIP has the potential to propel the company ‘sgrowth, foster innovation in engineering solutions, and enhance competitiveness. However, potential challenges or underperformance may require strategic adjustments.

In December, the company acquired a 100 percent stake in Epcogen, an engineering design and solutions company that works in the energy space, for Rs 26.25 crore. The acquisition has an additional three-year earnout of Rs 7 crore based on performance.

Through the acquisition, Axiscades can fortify its position in the energy markets in West Asia and North America, it said.

Axiscades Technologies is an end-to-end engineering and technology solutions provider, catering to aerospace, defence, engineering, heavy engineering, automotive, energy and semiconductor industries serving Global OEMs.

In the past year, Axiscades Tech has more than doubled investors’ money, rising 167 percent. In comparison, the benchmark Nifty gained around 21 percent. In past month, the stock has rallied 33 percent, outperforming the Nifty.

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