Folks, just 2 cents from me…
Please understand that many a times there are other decisions also in consideration for management to decide between equity and debt.
Like they may want to onboard some marquee institutional investors who gives credibility and visibility to the company among the various stakeholders. It wouldn’t be nice to have a 2.5 to 3kcrs marketcap and have no insitutional investors onboard. In this case, having two reputed DIIs (LIC and SBI MF) in QIP gives a lot of credibility on corporate governance and future potential.
Regarding doing fund raise, as someone has mentioned, their quarterly run rate will be now 500crs which gives 80% capacity utilisation. In any industry if you see significant demand coming in the future then you need to start building capacity well in advance. It will be foolish for company to let go some orders just because capacity is under construction!!!
Thanks
| Subscribe To Our Free Newsletter |
