Shares of Jupiter Wagons Ltd tanked 8 per cent in Wednesday's trade even as the company reported a 18 per cent rise in its net profit for the December quarter and said its board has approved a qualified institutional placement (QIP) worth Rs 3,000 crore. The wagon maker reported a net profit of Rs 96.43 crore for Q3 against Rs 81.46 crore in the year-ago quarter. Sales for the quarter grew 14.95 per cent YoY to Rs 1,029.83 crore from Rs 895.83 crore in the corresponding quarter last year.
Jupiter Wagons said its board has approved raising of funds, aggregating up to Rs 3,000 crore through qualified institutions placement ("QIP”) in terms of Chapter VI of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (the “ICDR Regulations”) and/or any other permissible mode(s), in accordance with the ICDR Regulations and other applicable regulations, through public and/or private offerings of equity shares.
This would be done in one or more tranches and/or one or more issuances simultaneously, subject to necessary approvals including the approval of the members of the company and such other regulatory/ statutory approvals as may be required.
"In connection with the QIP, the Company would seek the requisite approval from its shareholders through postal ballot. The process, timelines and other requisite details with regard to the postal ballot will be communicated in due course of time," Jupiter Wagons said.
The stock fell 9.11 per cent to hit a low of Rs 360 on BSE.
Meanwhile, Vikash Lohia, who is currently the Wholetime Director of the company would with effect from February 1 be designated as Deputy Managing Director in the capacity of Wholetime Director of the company.
Peer stock Titagarh Rail Systems Ltd was trading 3.66 per cent higher at Rs 949.50. Texmaco Rail & Engineering Ltd also advanced 2.90 per cent to Rs 182.65, ahead of the Union Budget 2025.
Amnish Aggarwal, Director - Institutional Research, PL Capital said FY25 railway investments (76 per cent spent in 9MFY25) focused on capacity enhancement. He sees announcements on continued investments in Vande Bharat trains, rolling stock upgrades, and Kavach ATCS systems (10,000 km target in 2 years) in the upcoming Budget.