Shares of Som Distilleries and Breweries Ltd. plunged as much as five percent in trade on Friday after the company said that it is planning to raise funds through a qualified institutional placement (QIP) route.

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The company set the floor price for its QIP at Rs 349.24 per share, which is a 9 percent discount to Thursday's closing levels of Rs 381.55.

In a filing to the stock exchanges, Som Distilleries said that the fundraising committee authorised the opening of the issue on October 5, 2023, and approved the floor price at Rs 349.24 per share.

The company's board of directors in its meeting on September 5 had approved a proposal to raise up to Rs 350 crore through public or private offerings or the QIP route.

Som's fund raising committee will again meet on October 10 to consider and approve the issue price, including a discount, if any to the floor price, for the eligible qualified institutional buyers.

QIP is a mode of resource raising available for listed firms to mobilize funds from the domestic market.

In June, Som Distilleries announced that the company’s market share in Karnataka hit the 20.1 percent mark. This was the highest market share to date for the company in the state.

The jump in market share was attributed to the effectiveness of the company's strategic initiatives and product innovations along with robust marketing campaigns and a strong distribution network.

In the fiscal year 2023, Som Distilleries gained a robust 13.9 percent market share in Karnataka, leaping from 6.9 percent in the fiscal year 2022.

Som Distilleries is involved in the business of brewing, fermentation, bottling, canning, and blending of beer and Indian-made foreign liquor.

Shares of Som Distilleries are trading 3 percent lower at Rs 369.95. The stock has tripled so far in 2023, rising 213 percent.

(Edited by : Hormaz Fatakia)

First Published:Oct 6, 2023 11:38 AM IST