Shares of Centum Electronics Ltd, an electronics system design and manufacturing company, rose up to 13% on Tuesday after the firm said it is raising funds through an institutional placement of shares, or QIP, to move up the value chain by 'delivering complete solutions' for armed services.
The company is raising funds through a QIP at a floor price of Rs 1,219.65 per share. The share sale will offer a discount of not more than 5% to the floor price for the issue, said Centum. The company plans to use the fund raise as a 'growth capital' to support the standalone business.
The ESDM player said that it now intends to 'delivering complete systems to the armed services', and is executing large projects. "We are actively working on large system-level opportunities in collaboration with our technology partners," an exchange filing said.
The management is 'actively exploring' opportunities in high-value programs in an effort to expand margin and aim for the global market. "This strategy positions our ER&D unit as a competitive and reliable partner for global clients, committed to delivering innovative solutions with optimized costs and enhanced margins," Centum Electronics said.
Centum Electronics stock gained 13% intraday to Rs 1356.35 on BSE. Market cap of the firm rose to Rs 1,601.27 crore. Later, the stock ended 3.40% higher at Rs 1241.60.
Centum Electronics designs, manufactures and also exports electronic products. It also provides design services to its customers. These include systems, subsystems and modules.