SRF launches Rs 750 crore QIP

SRF Limited, a chemical-based multi-business entity engaged in the manufacturing of industrial & speciality intermediates, has launched qualified institutional placement (QIP) amounting to Rs 750 crore.

The floor price for the issue has been fixed at Rs 4,168.73 per share (a discount of 4.5 per cent from its previous close of Rs 4,368.85). The company would offer a discount of not more than 5 per cent on the floor price of Rs 4,168.73.

On the Capex front, the board has recently approved the setting up of an additional facility to produce 100,000 MTPA of Chloromethane in Dahej (Gujarat) at a projected cost of Rs 315 crore. This project would enhance the company’s industrial chemical portfolio and is likely to commence by January 2022. The board had approved the setting up of an integrated facility for Polytetrafluoroethylene (PTFE) worth Rs 424 crore in August 2019. However, due to the global economic environment, the plant set up has been postponed by one year.

The company’s revenue mix as of Q1FY21 stands at chemical business-45.6 per cent, packaging film business-43.8 per cent, technical textile business-9.1 per cent and others-1.5 per cent. Out of these four segments, only chemical business has posted a healthy growth amid the pandemic with a growth in revenue as well as operating profit by 17 per cent and 13 per cent, respectively in Q1FY21.

The company has delivered a significant share price return of 68 per cent in the last one year.