Wheels India Ltd has successfully allotted 11,97,318 equity shares to qualified institutional buyers at an issue price of ₹2,088 per equity share, representing a premium of ₹2078 per share over the floor price. The allotment was completed pursuant to the company's ₹180 crore Qualified Institutional Placement (QIP) launched on September 24, with the floor price set at ₹2,197.10 per equity share and offering a discount of ₹109.10 (4.97%) to institutional investors. The total proceeds from this issue aggregated to ₹249.99 crore, demonstrating strong institutional demand for the company's shares.
Following the QIP allotment, Wheels India's paid-up equity share capital has increased to ₹26,86,23,610, consisting of 2,68,62,361 equity shares with a face value of ₹10 each. The QIP is expected to result in an equity dilution of approximately 4.7% of the company's total equity, as reported by CNBC TV18. The proceeds from this issue will be utilized for debt repayment, indicating the company's focus on strengthening its balance sheet through institutional funding. The company's 52-week trading range spans from ₹705.85 to ₹2,498.00, with a price-to-earnings (P/E) multiple of 32.53 and a dividend yield of 0.66%.
Wheels India shares jumped as much as 5.5% to hit an intraday high of ₹2,300 on Friday, September 25, compared with Thursday's closing price of ₹2,180.80, according to latest NSE data. At around 11:16 AM, the stock was trading 2.68% higher at ₹2,239.30 per equity share. The stock has shown remarkable resilience with a 3% gain in the past week and 49% rise over the month. On a year-to-date basis, shares have rallied 159%, while they have gained 152.35% over the past year. The market reaction suggests strong investor confidence in the company's QIP launch and strategic debt reduction plans, despite concerns about equity dilution impact.
Wheels India reported strong financial performance in Q1 FY27, with consolidated net profit surging 27.7% year-on-year to ₹38.3 crore compared with ₹30 crore in the corresponding quarter of the previous year. The company's consolidated revenue from operations stood at ₹1,491 crore during the quarter, reflecting a 17.8% YoY jump from ₹1,266 crore in Q1 FY26. These results demonstrate the company's robust operational performance and growth trajectory in the wheels manufacturing sector.
