The Qualified Institutions Placement (QIP) of Bharat Forge Ltd. has been authorized, with a floor price of ₹1,323.54 per share for the equity offering. The Board of Directors and shareholders already approved the decision through a postal poll, and the Investment Committee of the firm made it during a meeting on Wednesday.
The offering’s indicative price range is between Rs 1,290 and Rs 1,320, which is 4.2–6.38% less than the NSE’s most recent closing price. With this share sale, the business hopes to raise Rs 1,650 crore. The floor price may be reduced by up to 5% at Bharat Forge’s discretion.
QIP Impact On Bharat Forge Share Price
On December 4, Bharat Forge’s shares closed 2.1% higher at ₹1,379, indicating investor confidence in the QIP’s ability to strengthen the company’s finances. With an emphasis on increasing profitability across all of its businesses, the company anticipates steady performance in the second half of the fiscal year.
With a floor price of ₹1,323.54 and a systematic strategy to cash injection, Bharat Forge’s QIP launch represents a major step towards capital optimization. Investor confidence in the company’s future potential is demonstrated by the strong response of the Bharat Forge share price.
Bharat Forge Q2 FY25 Results
The business made Rs 3,689 crore in total revenue and Rs 690 crore in EBITDA. Due to challenges in the European automotive markets, sales fell 2.3% year over year; nonetheless, EBITDA grew by 10.8%, resulting in a 220 basis point YoY rise in margin from 16.5% to 18.7%. The group’s primary forging business, castings (aluminum and ferrous), and defense all received new orders totaling Rs 1,207 crores during the quarter. Defense accounted for two thirds of the Rs 2,216 crores in order wins in H1 FY25, while the components business contributed one third.
The military sector of the BFL group reported revenues of Rs 509 crore in the second quarter, which represents a 67% year-over-year rise. The executable order book was worth Rs 5,905 crores as of September 30th, with order wins in Q2 totaling Rs 642 crores.
