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Deepak Fertilisers raises Rs 510 crore via QIP, proceeds to be used for growth of projects

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Deepak Fertilisers raises Rs 510 crore via QIP, proceeds to be used for growth of projects

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Deepak Fertilisers is in focus after the company raised over Rs 500 crore via a QIP. Sailesh Mehta, CMD of Deepak Fertilisers, shared the business outlook with CNBC-TV18.

Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) on Monday said it has raised Rs 510 crore through a sale of shares to institutional investors. 
Leading investors from India and overseas, including Smallcap World Fund, Government Pension Fund Global, Axis Mutual Fund, Fidelity, Avendus and Societe Generale, among others, participated in the issue. "The QIP saw a strong response from long-only institutional investors including two of the leading global FIIs - Smallcap World Fund and Fidelity," according to the filing.
DFPCL has issued 1,24,39,029 equity shares via the Qualified Institutions Placement (QIP) of equity shares route. The floor price was set at Rs 422.48 per share but the shares were allotted at an issue price of Rs 410 per scrip. The company has plants located in four states -- Maharashtra (Taloja), Gujarat (Dahej), Andhra Pradesh (Srikakulam) and Haryana (Panipat).
Deepak Fertilisers’ CMD Sailesh Mehta said, “The utilisation is for the ongoing and future projects. In terms of debt, if I may just share, there is one component that is related to operations, the other is for growth. So, on the operation side, we are in a very, very comfortable position. As far as growth where we are planning to bring in some of these funds and grow. The projects have already capitalised the debt portions that are there and of course, the repayments and all start two years after the projects go into operations. So, in a nutshell, the proceeds are going to be aimed for growth projects.”
On debt, Mehta said as of June 30, the company had Rs 1,700 crore debt, down from March levels. He added that going forward, there will be kind of different flows that might be required for the projects.
Commenting on the sale of a Pune mall, he said, “We are in fact considering a sale of a lot of the non-core, we have begun that exercise. The whole space, not just the mall could be in the range of Rs 700-800 crore odd.”
Watch the accompanying video for more
Text inputs from PTI
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