In tough market conditions where raising equity is proving to be difficult, the Bangalore-based Dynamatic Technologies Ltd, has quietly concluded a qualified institutional placement (QIP) to Fidelity, Amansa and New Vernon.
The shares have been placed at Rs 1,234 a share, as against BSE's close of Rs 1,299 a share on Thursday.
The board has cleared an in-principle allotment of 6.04 lakh shares to the three investors to raise Rs 74.53 crore.
“Our investment plan envisages a budget of more than Rs 160 crore. We are looking at acquizitions, besides planning an expansion of domestic operations. The balance would be raised in the form of debt,” V Sunder, president (Finance), Dynamatic told TOI.
The company makes hydraulic gear pumps and valves at its Bangalore facility. It is one of the largest gear pump manufacturers in Asia. The Chennai plant makes castings.
In order to lower cost of power for its castings' unit, Dynamatic is in negotiations to take over a 12MW wind farm in Coimbatore. It has already shortlised a aerospace component manufacturer for acquiring it.
“Our plans are to acquire an aerospace component maker in UK, a 12MW wind farm near Coimbatore and also expand aerospace facilities to complete an Airbus order,” Sunder added.
Source: Times of India