KEI Industries raises Rs 500 crore via QIP

Mumbai: KEI Industries, manufacturer of wires and cables has raised Rs 500 crore from institutional investors such as L&T Mutual Fund, DSP MF and Sundaram MF, said people with knowledge of the development. The company’s issue was oversubscribed with bids of more than Rs 900 crore coming in, sources said.

The issue was of Rs 400 crore with a green shoe option of another Rs 100 crore.

Other investors include Goldman Sachs, Invesco, Tata AIG, HSBC Global.

“The company will use the funds to partially pay debt and fund its growth plans for the next couple of years,” sources said. The company is looking to set up new manufacturing facility which will bring in incremental growth for the company.

The New Delhi-based company that also does EPC manufactures high- and low-tension cables (HT, LT, EHV), control & instrumentation cables, house wires (HW), power cables, stainless steel wires (SSW) and electrical cables.

While Monarch Networth Capital Ltd was the advisor to the deal, Edelweiss Capital, Elara Capital and SBI Caps were the book running managers.

“This fund raise will help the company to significantly expand its retail presence which will result in higher margins and better growth in the coming years. The company is looking to capitalize on the recent reforms in the power sector,” said Gaurav Bhandari, CEO, Monarch Networth.


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