Morgan Stanley gets 11,79,254 equity shares allotment: This multibagger railway stock successfully concludes QIP of Rs 80,000 Lakhs; gains over 1,700 per cent!

Shares of the company have gained more than 80 per cent in the last six months.

Jupiter Wagons Limited (JWL) successfully raised Rs 800 crore through a Qualified Institutional Placement (QIP). The offering was heavily oversubscribed, receiving bids worth Rs 2,800 crore, showcasing strong investor confidence. The company issued over 122 million equity shares at Rs 655.50 per share, representing a discount to the floor price. Morgan Stanley's (11,79,254 equity shares allotment) and Bank of India's (7,62,777 equity shares allotment) mutual funds were among the major investors.

The proceeds will be primarily used to establish a new plant for manufacturing forged railway wheels and axles. This will allow Jupiter Wagons to better control production costs and expand into the export market. The company also issued preferential warrants to its co-promoter at a price of Rs 470 each, raising an additional Rs 135 crore. This additional funding will further support Jupiter Wagons' long-term growth strategy.

JWL is currently engaged in manufacturing railway wagons, wagon components, weldable CMS crossings, and load bodies for commercial vehicles and containers. JWL has manufacturing facilities located in Kolkata, Jamshedpur, Indore, Jabalpur and Aurangabad with full backward integration to its foundry operations. FIIs increased their stake in the company in March 2024. The company has an order book of Rs 7,10,166 lakh. Shares of Jupiter Wagons Limited have also delivered multibagger returns of more than 1,700 per cent in a three-year holding period.

The stock has shown impressive growth, and investors should keep a close eye on this stock.  

Disclaimer: The article is for informational purposes only and not investment advice.