Som Distilleries share price cracks over 5% as it junks QIP plan on poor response

livemint.com:

₹368 against the previous close of ₹369.10 and cracked 5.5 per cent to the day's low of ₹348.85 on BSE in Monday's trade so far. "The company is not going ahead with the proposed QIP issue due to a lesser amount of bids received towards its proposed QIP Issue. The company shall evaluate the viability of a fundraiser at a suitable time," Som Distilleries said on Monday.

"Our focus on growth and delivering shareholders value in the short and medium term remains intact," the company added. Consequently, the meeting of the 'Fund Raising Committee' scheduled on October 10, 2023 stands cancelled. The company had planned to raise funds through a QIP route, with the floor price for its QIP at ₹349.24 per share.

The company's board of directors in its meeting on September 5 had approved a fundraiser of up to ₹350 crore through public or private offerings or the QIP route. (Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) The stock fell 3.26 per cent on the BSE in the previous session after its QIP launch.

In the last one year, the stock has surged 188 per cent on the BSE while the equity benchmark Sensex has gained a little over 13 per cent. According to HDFC Securities Retail Research, Som Distilleries and Breweries’ prospects seem exciting at this juncture as it has delivered strong operating performance over the past few quarters and the management is aggressively targeting market expansion in a growing liquor market. The company’s performance in Q1FY24 was beat on all fronts, the brokerage firm noted.