In Q4, Mr. Ved announced that they have switched their investment banker from a Latin American company to Nomura. Nomura indicated that there is no project similar to the one conceptualized by the Pakka team. Furthermore, Mr. Ved mentioned their plan to raise ₹175 crore through a Qualified Institutional Placement (QIP). However, investors wanted the pricing to be ₹250 per share, which was not feasible as the share prices had risen above ₹350. According to SEBI guidelines, the average price of the last six months must be considered. Fortunately, the share price has since decreased, and investors for the ₹175 crore QIP are ready. Once they can proceed with the placement at ₹250 per share in compliance with SEBI rules, it will happen immediately. If this does not occur, they have also filed for a rights issue at ₹250 per share as an alternative option.
The total capital expenditure for India is ₹675 crore, with an additional ₹75 crore required for equity infusion in the Gautmala project, bringing the total to ₹750 crore. The funding plan includes raising ₹675 crore through QIP, covering 20% through internal accruals, and financing the remaining amount with debt.
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