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Inox Leisure completes Rs 250-crore QIP issue

Our Bureau. Ahmedabad | Updated on November 13, 2020 Published on November 13, 2020

Issue was over-subscribed about 3.5 times by global and domestic institutional investors

Multiplex chain, Inox Leisure Limited announced fundraising of Rs 250 crore through a Qualified Institutional Placement (QIP), which closed on November 12 and was oversubscribed by about 3.5 times.

Inox allotted 9,803,921 shares of the face value of Rs 10 each to eligible Qualified Institutional Buyers (QIBs) at Rs 255 per share.

On Friday, the company's shares traded at Rs 266.75, about 1 per cent lower from the previous close.

The QIP saw subscription from marquee global and Indian institutional investors, which included Abu Dhabi Investment Authority and Eastspring Investments, besides the Indian mutual fund houses like ICICI Prudential, Birla Mutual Fund, Nippon India Mutual Fund, DSP Mutual Fund and Sundaram Mutual Fund.

The issue allocation is approximately 69% and 31% to Indian and foreign investors respectively.

Siddharth Jain, Director – Inox Group, said, "We are delighted with the participation and support of high-quality investors, which will fuel the journey of Inox 2.0 in the future."

Inox intends to utilise the funds raised through the QIP to meet capital expenditure requirements for ongoing and future projects, to sustain growth in the business, for business expansion and to improve the leveraging financial strength of the company.

It will also be invested towards working capital requirements, towards debt repayments, for investments in subsidiary companies as well as for general corporate purposes, including but not limited to pursuing new business opportunities, acquisitions, alliances etc., an official statement said.

Overall, Inox aims to augment its business growth with the freshly accrued funds.

ICICI Securities Limited and IIFL Securities Limited acted as Book Running Lead Managers to the Issue. Khaitan & Co served as the sole Indian legal counsel to the issue and Squire Patton Boggs Singapore LLP acted as the International Legal Counsel to the Lead Managers concerning selling restrictions.

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Published on November 13, 2020
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