INOX said that the QIP, which closed for subscription on June 11th, was oversubscribed by more than five times.
“We are extremely grateful to the faith that our investors have shown in our business fundamentals, capabilities of our management team, and our quest to curate the best cinema-going experiences in the industry,” said Siddharth Jain, Director – INOX Group. “The incredible response to the QIP has instilled tremendous belief and assurance in us for all our future endeavours. As we tread towards a safer world, thanks to massive vaccination efforts all across the country, we feel empowered and committed to turn around towards our usual business performance and continue to deliver value to our stakeholders.”
The multiplex company allotted around 9.68 million shares of face value of Rs 10 each, to eligible qualified institutional buyers (QIBs) at an issue price of Rs 310 per share.
This is the second QIP by the company in the last one year. It had raised Rs 250 crore in November last year, by allocating 9.8 million shares to eligible institutional buyers at Rs 255 per share.
This QIP saw subscriptions from marquee Indian and global institutional investors. Indian investors included HDFC MF, Aditya Birla Sunlife MF, Nippon Life India MF, ICICI Prudential MF and Premji Invest. Some of the global investors included Eastspring Investments, Morgan Stanley and Millenium Management.
INOX will use the proceeds towards working capital requirements, debt repayments (including repayment of any existing or future debt), meet the current operational expenses, meet capital expenditure requirements for on-going and future projects, to sustain growth in the business, for business expansion, and to improve the financial leveraging strength of the company.
The company said it may also use funds in subsidiary companies and for general corporate purposes including new business opportunities, acquisitions and alliances etc.
At present, INOX operates 153 multiplexes with 648 screens in 69 Indian cities.
Edelweiss Financial Services and Axis Capital acted as Book Running Lead Managers to the Issue. Khaitan & Co acted as the sole legal counsel, while Squire Patton Boggs Singapore advised the lead managers on selling and transfer restrictions.
