Diamond Power raises 1,613 crore rupees in qualified institutional placement
Diamond Power and Infrastructure has raised 1,613.97 crore rupees from top-tier global and domestic funds to deleverage its balance sheet, signaling strong institutional appetite for Indian power equipment manufacturers despite broader market volatility.
Diamond Power and Infrastructure completed a qualified institutional placement on Tuesday, raising 1,613.97 crore rupees. The Vadodara-based power equipment manufacturer allotted 7.11 crore equity shares at an issue price of 227 rupees each, comprising a 1 rupee face value and a 226 rupee premium. This pricing represented a 4.99% discount to the regulatory floor price of 238.92 rupees.
The share sale attracted significant backing from major domestic and international asset managers, including Goldman Sachs Funds, HDFC Mutual Fund, Motilal Oswal, and Mirrae Asset. The placement allowed the company to bypass the lengthier public issue process to secure capital directly from qualified institutional buyers. This strong institutional demand underscores market confidence in the company's growth trajectory within the critical energy transmission space.
Management intends to deploy the fresh capital primarily toward debt reduction. The proceeds will be used to repay or prepay select outstanding borrowings from both promoter and non-promoter entities. This strategic deleveraging is expected to materially strengthen the balance sheet and reduce future interest costs for the manufacturer.
The capital raise follows a recent operational win for the transmission and distribution equipment maker. Earlier this month, the company secured a letter of award from Adani Energy Solutions Limited to supply specialized AL59 Moose and AL59 Zebra conductors. These developments highlight the firm's active role in India's expanding power infrastructure sector and its ability to win large corporate contracts.
Market reaction to the fundraising has been largely positive, with shares recovering on Wednesday after an initial intraday dip of over 2%. Despite weak broader market sentiments, the equity has maintained a largely positive near-term trend, gaining 18% over the past week and 52% over the last month. Year-to-date returns stand at 130%, extending a broader multi-year rally that has generated returns exceeding 318,900% over the past five years on the BSE.
