PG Electroplast, one of India's leading electronics manufacturing service provider, will utilise the Rs 500 crore fund that it raised through a qualified institutional placement (QIP) for enhancing operational efficiency, working capital requirements and a few other corporate purposes.

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Vikas Gupta, MD-Operations at PG Electroplast, said in an interview with CNBC-TV18, that this QIP fund, which represents a significant milestone for the company currently possesses a robust balance sheet, an increased net worth, and is presently free from net debt, will be directed into certain key capital expenditure, working capital needs and some other general corporate requirements.

Gupta said, "Out of the total Rs 500 crore, almost Rs 238 crore will be allocated towards strengthening our working capital. Additionally, around Rs 130 crore will be directed into capital expenditure (capex), while the remaining balance will serve various general corporate purposes."

The infusion of Rs 238 crore into working capital is a strategic move aimed at enhancing its operational efficiency. This induction of funds will enable the company to manage its day-to-day operations more effectively, ensuring a smooth and uninterrupted production cycle.

Allocating Rs 130 crore for capital expenditure demonstrates the company's commitment to expanding and modernising its infrastructure. This investment will also enable PG Electroplast to stay competitive in the rapidly evolving industry landscape by adopting cutting-edge technologies and improving its manufacturing capabilities, Gupta said.

This development highlights PG Electroplast's prudent financial management and its ability to attract investments from qualified institutional investors. The fresh fund infusion not only strengthens the company's financial position but also positions it for future growth and innovation.

The debt-free status achieved by PG Electroplast reduces financial risk and provides greater flexibility for the company to pursue strategic initiatives and explore new opportunities in the market.

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(Edited by : C H Unnikrishnan)

First Published:Sept 11, 2023 3:49 PM IST