Discover how Jupiter Wagons Limited skyrocketed its funding by 3.5x overnight

In a significant financial milestone, Jupiter Wagons Limited (JWL), a leader in comprehensive mobility solutions encompassing rail, road, and marine transportation, has successfully completed its Qualified Institutional Placement (QIP), raising a robust INR 800 Crores. The placement attracted overwhelming interest, with total bids amounting to approximately INR 2,800 Crores, underscoring a demand 3.5 times the offered size and reflecting strong confidence from institutional investors.

The QIP saw diverse participation from notable investors including ASK, Bank of India (BOI), HSBC Halbis, and SBI General Insurance, indicating broad market trust in JWL’s strategic direction and growth potential. Vivek Lohia, Managing Director at JWL, commented on the success, “The capital raised will primarily fund the establishment of a forged rail wheel and axle manufacturing plant. This strategic expansion aims to enhance our backward integration and supports our long-term objectives.”

Jupiter Wagons Limited secures INR 800 Crores in a stellar QIP, setting the stage for significant industrial growth and market expansion.

The proceeds from the QIP will be used to establish a state-of-the-art forged rail wheel and axle manufacturing facility. This move is expected to strengthen JWL’s manufacturing capabilities and expand its footprint in the export markets, further solidifying its position in the industry.

Additionally, the company announced the issuance of 12,204,424 equity shares at a price of Rs. 655.50 per share, incorporating a premium of Rs. 645.50. This issuance is complemented by preferential warrants to co-promoter Tatravagonka A.S., involving up to 2,872,340 Convertible Warrants priced at Rs. 470 each, reflecting a commitment of up to Rs. 135 Crores in cash.

Jupiter Wagons Limited boasts a diverse portfolio that includes freight wagons, locomotives, passenger coaches (LHB), braking systems, metro coaches, commercial vehicles, ISO marine containers, and specialized products like couplers, draft gears, bogies, CMS crossings, brake discs, and wheel sets. With manufacturing facilities in Kolkata, Jamshedpur, Indore, Jabalpur, and Aurangabad, and partnerships with global leaders such as Tatravagonka (Slovakia), DAKO-CZ (Czech Republic), Kovis Proizvodna (Slovenia), and Telleres Alegria S.A. (Spain), JWL is well-poised for future growth.

Systematix Corporate Services Limited and Nuvama Wealth Management Limited (formerly Edelweiss Securities Limited) served as the Book Running Lead Managers (BRLM) to the QIP.

The robust response to JWL’s QIP indicates a positive market outlook for the company’s strategic initiatives and its ability to capitalize on emerging opportunities in the transportation sector. The company’s focus on enhancing its manufacturing capabilities and expanding into new markets through strategic investments is likely to yield significant dividends and reinforce its market presence.