Jupiter Wagons Raises Rs 800 Cr Via QIP

Jupiter Wagons, on Monday, said it has raised Rs 800 crore through a Qualified Institutional Placement (QIP).

“The QIP received an overwhelming response, with total demand reaching approximately INR 2,800 Crores, demonstrating strong confidence from institutional investors. This demand, which was 3.5 times the size of the QIP, underscores the robust interest and trust in the company's future prospects,” the company said in a statement.

The QIP Issuance witnessed participation from a diverse range of investors, including ASK, BOI, HSBC Halbis and SBI General Insurance, among others. 

The funds raised through the QIP will support the company's growth plans. The capital raised will be predominantly allocated towards establishing a forged rail wheel and axle manufacturing plant. This strategic move is designed to enhance the company’s backward integration and support its long-term growth objectives. Moreover, this initiative will create opportunities to expand into the export market, further strengthening the company's growth and market presence.

Vivek Lohia, Managing Director of Jupiter Wagons Limited, said, “The overwhelming response, with total demand reaching approximately INR 2,800 Crores or about 3.5x of Issue size, demonstrates strong confidence from institutional investors and underscores the robust interest and trust in our company's future prospects. The capital raised will be majorly allocated towards establishing a forged rail wheel and axle manufacturing plant, a strategic move designed to enhance our backward integration and support our long-term growth objectives. Moreover, this initiative will create opportunities to expand into the export market, further strengthening our growth and market presence.”

He continued, "The QIP attracted participation from a diverse range of investors, including ASK, BOI, HSBC Halbis, and SBI General, showcasing strong market confidence in Jupiter Wagons Limited. The issuance of Convertible Warrants to Tatravagonka A.S. further strengthens our strategic relationship and validates their confidence in the opportunity.”

Systematix Corporate Services and Nuvama Wealth Management (formerly known as Edelweiss Securities Limited) were the Book Running Lead Managers (BRLM) to the QIP.