Edelweiss Financial gains on successful fund raising through QIP issue

The stock was trading 3.5% higher at Rs 296 on the BSE after the company said it has successfully raised Rs 1,528 crore through the Qualified Institutions Placement route.

Edelweiss Financial Services (EFSL) was trading 3.5% higher at Rs 296 on the BSE, after the company said it has successfully raised Rs 1,528 crore through Qualified Institutions Placement (QIP) route. This is the first equity fund raise by EFSL since its IPO in December, 2007.

The company will utilise the proceeds for augmenting long-term resources, fund growth and expansion, maintaining capital adequacy, and consolidation of its subsidiaries.

“The company allotted 54.56 million equity shares to qualified institutional buyers (QIBs) at Rs 280 per shares, at a discount of 1.8% to the QIP floor price of Rs 285.14