In a pivotal move for JK Tyre & Industries, the tyre manufacturer witnessed a substantial 4.75% surge in its shares following the triumphant conclusion of its fund-raising initiative. The company successfully raised Rs 500 crore through a Qualified Institutional Placement (QIP), signaling robust investor confidence in its growth trajectory.
The QIP, priced at Rs 345 per share, including a premium of Rs 343 per share with a face value of Rs 2 per share, marked a strategic move for JK Tyre. Raghupati Singhania, Chairman and Managing Director of JK Tyre, described the completion of the QIP as an “important milestone in our corporate journey.” He highlighted the participation of esteemed investors as an endorsement of their faith and confidence in the company’s growth story.
The QIP garnered widespread interest from marquee investors, including Indian mutual funds (MFs), insurance companies, and foreign institutional investors. The overwhelming response reflects a positive sentiment surrounding JK Tyre’s strategic initiatives and market position.
JK Tyre & Industries, the flagship company of the JK group, is a key player in the manufacturing of trucks, buses, light commercial vehicles (LCV), passenger cars, multi-utility vehicles (MUV), and tractors. Present in 100 countries with over 230 global distributors, the company operates 12 manufacturing facilities, with 9 in India and 3 in Mexico. Boasting an annual manufacturing capacity of approximately 34 million tyres, JK Tyre also boasts a robust network of 700 stores and 6,000 dealer partnerships.
The QIP issue, expertly managed by Emkay Global Financial Services Ltd, signifies JK Tyre’s commitment to fortifying its financial position and pursuing strategic opportunities for growth.
