Jupiter Wagons Ltd., a mobility solutions provider for rail, road, and marine transportation, announced that it has raised ₹800 crore through a Qualified Institutional Placement (QIP).
“The QIP received an overwhelming response, with total demand reaching approximately ₹2,800 crore. This demand, which was 3.5 times the size of the QIP, underscores the robust interest and trust in the company’s future prospects,” the company stated.
The QIP issuance attracted a diverse group of investors, including ASK, BOI, HSBC Halbis, and SBI General Insurance, among others.
Successful QIP Completion
Vivek Lohia, Managing Director of Jupiter Wagons Ltd., stated, “The capital raised will primarily be used to establish a forged rail wheel and axle manufacturing plant. This strategic move is intended to enhance our backward integration and support our long-term growth objectives.”
“Additionally,” he added, “this initiative will create opportunities to expand into the export market, further strengthening our growth and market presence.”
Jupiter Wagons Limited, a leading provider of comprehensive mobility solutions for rail, road, and marine transportation, is pleased to announce the successful completion of its Qualified Institutional Placement (QIP), raising INR 800 crore. The QIP received an overwhelming response, with total demand reaching approximately INR 2,800 crore, demonstrating strong confidence from institutional investors. This demand, which was 3.5 times the size of the QIP, underscores the robust interest and trust in the company’s future prospects.
The QIP issuance attracted a diverse range of investors, including ASK, BOI, HSBC Halbis, and SBI General Insurance, among others. The capital raised will primarily be allocated towards establishing a forged rail wheel and axle manufacturing plant. This strategic move is intended to enhance the company’s backward integration and support its long-term growth objectives. Additionally, this initiative will create opportunities to expand into the export market, further strengthening the company’s growth and market presence.
The company will issue 12,204,424 equity shares with a face value of Rs. 10 per share at a price of Rs. 655.50, which includes a premium of Rs. 645.50. Additionally, preferential warrants are being issued to co-promoter of Jupiter Wagons, Tatravagonka A.S., consisting of up to 2,872,340 convertible warrants at a price of Rs. 470 each (including a Rs. 460 premium), with a total consideration not exceeding Rs. 135 crore in cash.
Systematix Corporate Services Limited and Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) were the Book Running Lead Managers (BRLM) for the QIP.
Capital Allocation Strategy
Commenting on the successful fundraise, Mr. Vivek Lohia, Managing Director of Jupiter Wagons Limited, said, “The overwhelming response, with total demand reaching approximately INR 2,800 crore or about 3.5 times the issue size, demonstrates strong confidence from institutional investors and underscores the robust interest and trust in our company’s future prospects. The capital raised will primarily be allocated towards establishing a forged rail wheel and axle manufacturing plant, a strategic move designed to enhance our backward integration and support our long-term growth objectives. Moreover, this initiative will create opportunities to expand into the export market, further strengthening our growth and market presence.”
He continued, “The QIP attracted participation from a diverse range of investors, including ASK, BOI, HSBC Halbis, and SBI General, showcasing strong market confidence in Jupiter Wagons Limited. The issuance of convertible warrants to Tatravagonka A.S. further strengthens our strategic relationship and validates their confidence in the opportunity.”
About Jupiter Wagons Ltd. (JWL) (BSE: 533272; NSE: JWL)**
Jupiter Wagons Limited (JWL) is a provider of comprehensive mobility solutions, offering a diverse range of products across freight wagons, locomotives, passenger coaches (LHB), braking systems, metro coaches, commercial vehicles, ISO marine and specialized containers, and components such as couplers, draft gears, bogies, CMS crossings, brake discs, brake systems, wheels, axles, and wheel sets. JWL’s manufacturing facilities are located in Kolkata, Jamshedpur, Indore, Jabalpur, and Aurangabad, with full backward integration to its foundry operations.
The group has established partnerships with leading global companies such as Tatravagonka (Slovakia), DAKO-CZ (Czech Republic), Kovis Proizvodna (Slovenia), and Telleres Alegria S.A. (Spain). With a rich legacy spanning over four decades, the company has leveraged its deep technological capabilities and robust financial position to emerge as a one-stop shop for mobility solutions and reinforce its position as one of the fastest-growing in the industry. Serving industries such as railways (freight and passenger), metro rail, automobile, transportation, logistics, construction equipment, municipalities, healthcare, energy, mining, and infrastructure, the company boasts a marquee client base including the Indian Railways, American Railroads, Indian Ministry of Defense, BEML, Alstom, Tata Motors, GE, Volvo Eicher Motors, Bharat Benz, and Avia Motors.
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